Advertisement

Home / Business / SBI Mutual Fund may soon get listed on bourses

SBI Mutual Fund may soon get listed on bourses

SBI MF is the country’s largest fund house; its average assets under management (AAUM) stood at Rs 5.78 lakh crore in the July-September 2021 quarter
Representational image.
Representational image.
File photo

Our Special Correspondent   |   Mumbai   |   Published 16.12.21, 02:14 AM

SBI Mutual Fund (SBI MF) may soon be listed on the bourses. State Bank of India (SBI) which holds almost 63 per cent in the fund house on Wednesday said it planned to offload 6 per cent of its stake through an offer for sale (OFS).

“The executive committee of the central board of the bank has accorded approval for exploring possibilities to offload 6 per cent stake of the bank in SBI Funds Management Pvt Ltd through initial public offering (IPO) route, subject to receipt of all regulatory approvals,’’ the country’s largest lender said in a regulatory filing on Wednesday.

Advertisement

SBI MF is the country’s largest fund house. Its average assets under management (AAUM) stood at Rs 5.78 lakh crore in the July-September 2021 quarter according to AMFI data. It is a joint venture between SBI and Amundi of France, which holds around 37 per cent through a wholly owned subsidiary.

The French asset manager is planning to sell around 4 per cent of its stake in the proposed IPO. Reports say the public float could raise around $1 billion.

Four asset management companies are listed on the bourses at present — HDFC Asset Management, UTI Asset Management, Nippon Life India Asset Management and Aditya Birla Sunlife Asset Management. Aditya Birla Sunlife got listed in October. It was a tepid debut with its shares falling below the issue price of Rs 712 per share. It is being quoted at Rs 576.80 — a discount of 19 per cent.

UTI Asset Management is the best performing fund house of the listed entities, surging almost 83 per cent in a year.

PLR hike

SBI, the country’s largest bank, on Wednesday raised the benchmark prime lending rate (BPLR) and the base rate, but kept the marginal cost of fund-based-lending rate (MCLR) unchanged. The base rate has been raised to 7.55 per cent from 7.45 per cent  while BPLR is up to 12.30 per cent from 12.20 per cent .

The changes are expected to affect some of the bank’s customers as most of them have shifted to the MCLR regime. Banks had shifted to base rates from BPLR in 2010 and to MCLR from 2016.



Advertisement
Advertisement
Advertisement
 
 
 
Copyright © 2020 The Telegraph. All rights reserved.