The State Bank of India and Amundi Asset Management plan to offload a combined 10 percent stake in their Indian mutual fund joint venture, extending a record year for initial public offerings (IPOs) in the South Asian nation.
The State Bank of India, the country’s largest lender, aims to sell a 6 percent stake in SBI Funds Management Pvt, while Amundi intends to sell 4 percent, the firms said in separate filings yesterday.
The IPO would seek to raise about US$1 billion, according to people with knowledge of the matter, unchanged from when Bloomberg News had first reported the planned transaction in February.
With more than 6 trillion rupees (US$79 billion) of assets at the end of September, SBI Funds is India’s biggest asset manager and reports the highest profit among the State Bank of India’s unlisted units.
This year, Indian firms have raised more than US$15 billion through IPOs, a record for the nation that has seen its main stock index rally 20 percent in one of Asia’s best performances.
The State Bank of India owns 63 percent of SBI Funds, and Amundi holds the rest. The listing might happen early in the next financial year starting in April, the people said on condition of anonymity.
“The IPO would be achieved on the Indian stock market in 2022,” Amundi said in its filing.
The State Bank of India and SBI Funds did not respond to e-mails seeking comment.
The mutual fund’s IPO process was delayed by a COVID-19 wave that struck India in March.
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