The chairman of India's largest lender has confirmed that the bank aims to complete the initial public offering of SBI Mutual Fund in the next 12 months. This move is expected to have a significant impact on the market.
The bank's focus is on completing the IPO of SBI Mutual Fund within 12 months, with no plans for other IPOs or stake sales. The company's two promoters plan to sell a combined 10% stake through the public offering.
The bank has a strong financial position, with a capital-to-risk-weighted assets ratio (CRAR) at 15% and common equity Tier 1 (CET1) at 12%. This means that SBI can support 12–13 lakh crore credit growth over five years without any equity dilution proceeds from the mutual fund IPO.
The veteran banker believes that it is important to list diversified companies on the exchanges, as this will provide investors with more options. He also stated that higher FII limits in PSU banks would add value, as investors want headroom.
The boards of respective shareholders have approved a timeline of 12 months for the IPO. The company has started the process of identifying merchant bankers and other service providers to facilitate the public offering.
Remember, this is a developing story, and investors should do their own research before making any investment decisions.
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