The State Bank of India (SBI) on Wednesday said that it has decided to sell 8.25 percent of its stake in UTI AMC through an initial public offering (IPO).
"Pursuant to the applicable provision on the SEBI Regulation, we advise that the Executive Committee of the Central Board of Directors (ECCB) of the Bank at its meeting held today has accorded final approval, for divestment of SBI stake in UTI AMC upto 8.25% through IPO by way of offer for sale of upto 1,04,59,949 equity shares (the "Offered Shares"), subject to the approval of the Securlties and Exchange Board of India ('SEBI'), and/or such other concerned authorities and departments," said its BSE filing on Wednesday.
At present, SBI, LIC, Punjab National Bank and Bank of Baroda hold 18.5 percent stake in UTI AMC, each. The rest is held by American company T Rowe Price.
SBI has its own AMC (asset management company) business. SEBI rules introduced in March 2018 put a cross-holding limit which does not allow a shareholder who has at least 10 percent stake in a mutual fund to hold a similar-sized stake in another fund house. Board positions would also have to be given up.