No further dilution by SBI in SBI Funds Management: Chairman C S Setty | Company News
State Bank of India (SBI) does not plan to dilute any further stake in its asset management subsidiary, SBI Funds Management, after its stock market debut, Chairman C S Setty said on Tuesday.
“At this stage, we are not considering any further stake dilution. Any future decision would, of course, be guided by public shareholding requirements. The same applies to Amundi,” Setty said after the company’s listing ceremony.
SBI Funds Management made a subdued debut on the bourses, listing at Rs 613.30 on the National Stock Exchange (NSE), a premium of 6.85 per cent over its issue price of Rs 574. The stock ended the day at Rs 609.75.
SBI diluted around 6 per cent of its stake in the asset management company, while its joint venture partner, global asset manager Amundi, sold nearly 4 per cent of its holding through the offer. Following the listing, SBI’s holding in the asset manager stands at 55.46 per cent, while France-based asset manager Amundi owns 32.56 per cent.
The Rs 9,812-crore initial public offering (IPO) was one of the largest public issues to hit the market in recent years.
“We are a committed and long-term shareholder in SBI Funds Management. We intend to continue strengthening this partnership, growing together, and supporting the company for many years to come,” said Nicolas Calcoen, deputy chief executive officer (CEO) of Amundi.
On the possibility of listing other SBI subsidiaries, Setty said some of the bank’s unlisted businesses still need to attain greater scale and maturity before any decision on an initial public offering is taken.
He reiterated that the country’s largest lender remains firmly focused on its core banking franchise despite expanding its wealth and investment offerings.
“We serve more than 530 million customers and add around 60,000-70,000 new customers every day. We continue to maintain the largest market share in both deposits and advances,” Setty said.
He added that helping customers meet their investment needs does not mean the bank is shifting away from its core banking business. “Our objective is to offer appropriate financial products based on customer requirements.”
Setty noted that mutual fund penetration among SBI’s customer base remains below 4 per cent, presenting significant headroom for growth.
He said the bank primarily distributes products manufactured by its own subsidiaries because it has greater oversight over product quality and customer suitability while making investment products more accessible to customers.
