SBI next to IPO?


Ella Jones, Deputy Editor In Chief

Date: 03.03.2021

State Bank of India, the country’s largest lender, is preparing for its mutual fund joint venture for an initial public offering, according to people familiar with the matter.

SBI plans to ask investment banks for proposals after discussions with its board and shareholder Amundi Asset Management and kick off the process in the next few months, the people said. The lender could raise about $1 billion from the offering, one of the people said, who asked not to be identified as the information is private. SBI’s mutual fund is currently valued at about $7 billion, another person said.

At $1 billion, the first-time share sale could be India’s biggest since the $1.4 billion listing by SBI Cards & Payment Services Ltd. in March, according to data compiled by Bloomberg. The SBI mutual fund business would also be the third such listing of its kind in the country, joining UTI Asset Management Co. and HDFC Asset Management Co.

Shares in SBI pared losses in Mumbai after the Bloomberg News story, ending the day 4.2% lower as the broader banking gauge was down 4.9%.

by Ella Jones | Linkedin

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