The State Bank of India (SBI) on Wednesday said it has received board approval for selling its 6 per cent stake in SBI Mutual Fund through the initial public offering (IPO) route.
The Executive Committee of Central Board has accorded approval for exploring possibilities to offload 6 per cent stake of the bank in SBI Funds Management Private Limited through IPO route, SBI said in an early morning regulatory filing. This is subject to receipt of all regulatory approvals, it added.
SBI Funds Management Pvt Ltd (SBIFMPL) is a Joint Venture between SBI and AMUNDI (France), one of the world's leading fund management companies. AMUNDI Asset Management picked up 37 per cent stake in the fund house in April 2011, according to SBI Mutual Fund website. Accordingly, SBI currently holds 63 per cent stake in SBIFMPL and the 37 per cent stake is held by AMUNDI Asset Management through a wholly-owned subsidiary -- Amundi India Holding.
However, the SBI regulatory filing did not clarify if its foreign partner is also diluting stake in the asset management company. Initially, this 37 per cent holding was held by Societe Generale Asset Management SA, a subsidiary of Societe Generale SA, which was transferred to Amundi in June 2011, with due approval of SEBI.