SBI likely to sell 8.25% stake in UTI MF via IPO

The State Bank of India (SBI) is planning to sell 8.25 percent of its stake in UTI Asset Management Company through an initial public offering (IPO) of shares.

IPO

The board of India’s largest public sector lender has already given final nod to this development.

UTI’s four domestic shareholders are LIC, State Bank of India (SBI), Punjab National Bank (PNB) and Bank of Baroda (BoB) and they hold nearly 18.5 percent stake each. They also own their own asset management companies (AMCs).

As the crossholding mandates of market regulator Sebi is applicable to all the four promoters, they will have to slash the stake in UTI Mutual Fund below 10 percent and leave board seats. US-based fund T Rowe Price acquires the remaining 26 percent stake in UTI Mutual Fund.

“We advise that the Executive Committee of the Central Board of directors (ECCB) of the Bank at its meeting has accorded final approval for divestment of SBI stake in UTI AMC up to 8.25 per cent through IPO by way of offer for sale of upto 104,59,949 equity shares, subject to the approval of the Securities and Exchange Board of India (SEBI) and/ or such other concerned authorities and departments,” said SBI said in a stock exchange filing.

SBI owns its own mutual fund that manages assets worth Rs 320,662 crore.

UTI MF has an AUM of worth Rs 154,229 crore.

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