State Bank of India (SBI) has said that it has no plans to reduce its stake in SBI Funds Management after the company’s stock market listing. SBI Chairman CS Setty said the IPO was launched to give retail investors a chance to invest in the asset management business, not to reduce SBI’s ownership.
SBI Funds Shares List at a Premium
SBI Funds Management made its stock market debut on Tuesday. The shares were listed at Rs 613.30 on the NSE, which was 6.85% higher than the IPO price of Rs 574 per share. The IPO, worth Rs 9,812.91 crore, was open from July 14 to July 16 and received strong investor interest, with subscriptions reaching 41.66 times.
IPO Aims to Create Long-Term Value
CS Setty said the listing is part of SBI’s long-term strategy to create value through its subsidiaries while allowing more retail investors to become shareholders. He said SBI has invested around Rs 6,000 crore in SBI Funds Management and will continue to support the company after the IPO.
Strong Governance Standards
The SBI Chairman said SBI Funds Management has maintained high corporate governance standards even before becoming a listed company. He credited the strong partnership between SBI and Amundi for building these governance practices and increasing investor confidence.
Fund Performance Remains the Top Priority
Setty said the success of SBI Funds depends mainly on the performance of its investment schemes. He added that delivering good returns to investors will continue to be the company’s biggest priority and is important for maintaining the SBI Funds brand.
Expansion Plans for B30 Cities
SBI Funds Management plans to increase its presence in B30 cities, which are smaller cities beyond the top 30 metropolitan centres. The company also plans to strengthen its distribution network and invest more in technology to provide better services and investment solutions to customers.
Banking Will Continue to Play a Key Role
CS Setty said that banking will remain an important part of SBI Funds Management’s business model as the company continues to grow and expand across the country.
