SBI Shares Gain 1%; SBI To Oflload Its Stake In SBI Mutual Funds Via IPO
Shares of the country's leading public sector lender State Bank of India (SBI) in trade on December 16, 2021 gained by as much as 1 percent to day's high price of Rs. 490.55 as against the previous day's close of Rs. 484.8 per share on the NSE. Last, the SBI shares at around 10:03 am traded higher by minor gains of 0.2 percent, paring early gains. Meanwhile, Nifty Bank also came off day's high and was up just 0.14%.
Notably, SBI in a filing on December 15, 2021 said "we advise that the Executive Committee of Central Board of the Bank has accorded approval for exploring possibilities to offload 6% stake of the Bank in SBI Funds Management Private Limited through IPO route, subject to receipt of all regulatory approvals".
Likewise, SBI is all set for the share sale of its mutual fund business. SBI Mutual Funds is a joint venture between the country's largest public run lender SBI and France-based Amundi Asset management. According to the media reports, the mutual fund company aims to mop up about US$1billion via the IPO route, valuing the company to around US$7 billion.
Currently, 4 mutual fund companies are listed on the bourses including HDFC AMC, UTI Asset Management, Aditya Birla Sun Life AMC and Nippon Life India Asset Management. Consequently, SBI Mutual Funds shall be the 5th player in the segment to hit the bourses.
The plans of listing the mutual fund arm is to extract higher value from its existing businesses after the lender partially divested its stakes in the cards and life insurance businesses. Last year just before the Covid outbreak, SBI Cards came up with its IPO in March 2020.
GoodReturns.in