SBI approves 6% stake sale in mutual fund

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State Bank of India said it has received board approval for selling its 6% stake in SBI Mutual Fund through the Initial Public Offering (IPO) route on Wednesday.

The central board’s executive committee has accorded approval for exploring possibilities to offload 6% stake of the bank in SBI Funds Management Private Limited through IPO route, SBI said in an early morning regulatory filing.

AMUNDI picked up 37%

It added that this is subject to receipt of all regulatory approvals. SBI Funds Management Pvt Ltd (SBIFMPL) is a joint venture between SBI and AMUNDI (France), one of the world’s leading fund management companies.

AMUNDI Asset Management picked up 37% stake in the fund house in April 2011, according to SBI Mutual Fund website.

Currently, SBI holds 63% stake in SBIFMPL and the 37% stake is held by AMUNDI Asset Management through a wholly-owned subsidiary, Amundi India Holding.

However, the bank’s regulatory filing did not clarify if its foreign partner is also diluting stake in the asset management company.

Initially, this 37 % holding was held by Societe Generale Asset Management SA, a subsidiary of Societe Generale SA, which was transferred to Amundi in June 2011, with due approval of SEBI.