SBI board approves exploring of possibilities to offload 6% in SBI Funds through IPO

State Bank of India board has approved the exploration of possibilities to offload 6 per cent stake of the lender in SBI Funds Management Private Limited through IPO. This will be subject to receipt of regulatory approvals.

“Pursuant to Regulation 30 and other applicable provisions of SEBI (LODR) Regulations, 2015, 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,” stated the lender in a BSE filing on Wednesday.

SBI Funds Management is a joint venture between SBI and French fund management company Amundi, as mentioned in its website. It aims to establish mutual funds as a viable investment option. It also advises various financial institutions, pension funds, and local and international asset management companies. SBI Funds Management also offers alternate asset investment products through Alternative Investment Funds (AIFs).

SBI’s stock opened 0.45 per cent higher at Rs 490.7 against the previous close of Rs 488.55 on the Bombay Stock Exchange (BSE). With a market capitalisation of more than Rs 4,36,000 crore, the shares stand higher than 5 day, 20 day, 100 day and 200 day moving averages but lower than 50 day moving averages.

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