State Bank of India has no plans to dilute its stake in SBI Funds Management following the asset manager’s stock market debut, Chairman CS Setty said on Tuesday, adding that the public listing was intended to give retail investors an opportunity to participate in the business.
“We are not looking for any dilution in SBI Funds,” Setty told reporters after the company’s listing ceremony in Mumbai.
The comments came on the day SBI Funds Management made its stock market debut after its initial public offering. The shares listed at Rs 613.30 apiece on the NSE, a premium of 6.85% over the IPO price of Rs 574 per share. The Rs 9,812.91 crore public issue, which was open between July 14 and July 16, was subscribed 41.66 times.
Setty said the listing forms part of SBI’s broader strategy of creating long-term value across its subsidiaries while widening access for retail investors.
SBI has invested about Rs 6,000 crore in SBI Funds Management, Setty said. He added that the lender’s support has been a key factor behind the company’s listing and continues to strengthen investor confidence.
“We wanted to bring opportunity for retailers through this IPO,” Setty said.
He said SBI Funds Management had adopted governance standards even before becoming a listed company. According to Setty, those standards have been shaped by the partnership between SBI and Amundi.
“Governance has been driven by the SBI and Amundi partnership,” he said.
Setty said the company’s value extends beyond the performance of its investment schemes. He added that maintaining fund performance remains central to the SBI Funds brand.
“Performance of the funds is key for the brand of SBI Funds,” he said.
Looking ahead, Setty said SBI Funds Management plans to expand its presence in B30 cities and strengthen its distribution network. He added that the company will continue investing in technology to improve its offerings for investors.
“We want to penetrate more in B30 cities,” Setty said. “We have diversified our distribution strength and will focus on developing technology to give better offerings to investors.”
He also said banking remains central to SBI Funds Management’s business model.
About the Author
