SBI Mutual Fund IPO: The country’s largest AMC company may launch IPO soon!
CS Shetty, chairman of India’s largest lender, has confirmed that the bank is targeting to complete the initial public offering (IPO) of SBI Mutual Fund in the next 12 months. According to the report, he said, “Our focus is to complete the IPO of SBI Mutual Fund within 12 months. There are no plans to do another IPO or sell stake.
According to an Economic Times report, when asked whether SBI would need new capital, Shetty said not for the next five years. With a capital-to-risk-weighted assets ratio (CRAR) of 15% and common equity tier 1 (CET1) of 12%, SBI Mutual Fund can support credit growth of Rs 12-13 lakh crore over five years without equity dilution from the IPO. Even taking into account Expected Credit Loss (ECL) norms, the bank has adequate buffers. The company’s annual profit of Rs 70,000-80,000 crore can support this growth.
Regarding the IPO, Chairman CS Shetty said that it is important to understand that today India needs a lot of good companies for investment. A lot of money is coming into the stock market, and if there are not enough companies in the world of investment, investors are investing in the same companies again and again. I think it is important that different types of companies are listed on exchanges. As far as pricing and valuations are concerned, beauty is in the eye of the beholder. So, it all depends on who is looking at that investment.
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SBI Mutual Fund, the largest fund house, has started the process of appointing merchant bankers and other service providers to facilitate the Initial Public Offering (IPO). The relevant shareholders, namely SBI and Amundi, and the board of SBI Funds Management Limited (SBIFML) have approved the 12-month timeline.
About SBI MF IPO
SBI MF IPO will open on TBA and close on TBA. Price band is TBA. Lot size is TBA. Listing date is TBA. Allotment date is TBA. Refunds will begin TBA.
SBI MF has an illustrious legacy and is a joint venture between SBI and Amundi (France), one of the largest asset management companies in the world. Delivering value to investors, SBI MF is known for adopting global practices and maintaining international standards in its operations.
Disclaimer: This article is for informational purposes only and should not be construed as investment advice in any way. ET NOW Swadesh recommends its readers and viewers to consult their financial advisors before taking any money-related decisions.
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