The State Bank of India's board has approved dilution of up to 8.25 percent stake in UTI Asset Management Company's initial public offering, India's largest lender said on Wednesday.
"The executive committee of the central board of directors of the bank at its meeting held today has accorded approval for divestment of SBI stake in UTI AMC up to 8.25 percent through IPO," SBI said in a regulatory filing.
The bank said it offers to sell up to 1,04,59,949 equity shares, subject to approval from the markets regulator and such other concerned authorities and departments.
As on March 31, SBI held 18.24 percent stake in UTI AMC, equivalent to 2.31 crore shares, an annual report showed. The lender's stake in the asset management company will fall to 10 percent after the IPO.
UTI AMC has a net worth of Rs 2,408 crore, according to its latest annual report. The company's average assets under management for the domestic mutual fund stood at Rs 1,59,694 crore in 2018-19. It managed an overseas fund of Rs 11,875 crore.
Apart from SBI, Life Insurance Corporation of India, Punjab National Bank and Bank of Baroda are key shareholders of UTI AMC holding 18.50 percent each. T Rowe Price International holds 26 percent stake.
On Wednesday, SBI shares rose 1.56 percent to Rs 341.50 apiece on the NSE while the benchmark Nifty 50 gained 0.41 percent to 12,043.20 points.
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