SBI Mutual Fund Prepares for Landmark IPO

SBI Mutual Fund, India's largest asset manager, is preparing for a significant IPO. Both its major shareholders, SBI and Amundi, plan to offload a combined 10% stake. The IPO process will include the appointment of merchant bankers, marking a strategic move in the financial sector.

SBI Mutual Fund, the largest fund house in India, has initiated the preliminary steps for launching an initial public offering (IPO), marking a significant milestone for the company. The announcement follows the approval from the boards of its primary shareholders, SBI and Amundi, as well as the board of SBI Funds Management Ltd (SBIFML).

The strategic maneuver will see the divestment of a combined 10% stake by its two promoters, including SBI's approval of offloading over 3.20 crore equity shares, equating to 6.3007% of total equity. In parallel, Amundi will divest a further 3.7006% through its 1.88 crore equity shares.

Market analysts observe that the IPO, expected within 12 months, will bolster SBI Mutual Fund's position in the financial sector, as it currently commands a 15.55% market share. This development coincides with the Reserve Bank of India's recent policy decision to lower the repo rate, providing a conducive environment for growth and investment.