State Bank of India (SBI) is planning to offload a 6 per cent stake in its mutual fund subsidiary SBI Funds Management Private Ltd (SBI MF) through an Initial Public Offer (IPO). However, the lender has not indicated a timeline for coming to the market with a public offer.

The executive committee of the central board has accorded approval for exploring possibilities to offload a six per cent stake of the bank in SBI Funds Management Private Limited through the IPO route. The move is subject to receipt of all regulatory approvals, the bank said in filings with the Bombay Stock Exchange (BSE).

Currently, SBI holds a 63 per cent stake in the mutual fund company. AMUNDI Asset Management has the remaining 37 per cent stake through a wholly-owned subsidiary, Amundi India Holding. The other asset companies listed on exchanges are UTI Asset Management, Aditya Birla Sun Life Asset Management Company and Nippon Life India Asset Management Ltd.

SBI has maintained that it wants to monetise a part of its stake in the subsidiaries by listing them on the stock exchange. The monetisation is expected to bring in capital for parent SBI. Apart from the mutual fund company, the bank indicated that it would list the general insurance company. On the other hand, SBI cards and SBI Life Insurance are already listed.