CS Shetty, chairman of State Bank of India (SBI), the promoter company of SBI Funds Management, said on Tuesday that SBI has no plans to reduce its stake in the company after the listing. The objective of the IPO was to make retail investors partners in the company’s growth.
“We have no plans to reduce our stake in SBI Funds after the listing,” Shetty told reporters after the listing ceremony in the country’s financial capital.
He said the listing is part of SBI’s broader strategy to create long-term value in its subsidiaries and also increase participation of retail investors in high quality businesses.
“We wanted to bring opportunities for retail investors through this IPO,” he said.
According to Shetty, SBI has invested around Rs 6,000 crore in SBI Funds Management and the bank’s continued support has been crucial to the company’s growth and successful listing.
He also said that even before becoming a listed company, SBI Funds Management had adopted strong corporate governance standards. The long-standing partnership relationship between SBI and Amundi, a French asset management company, has further strengthened the governance framework of the company.
“Governance has been strengthened by the partnership between SBI and Amundi,” Seti said.
Speaking on the importance of consistently outperforming returns, Shetty said the long-term value of a company is not limited to the performance of any one mutual fund scheme. However, maintaining strong fund performance will remain the key priority for the SBI Funds brand.
On future strategy, he said the asset manager will now focus on expanding its presence in B30 cities (cities outside the top 30 cities based on mutual fund assets) to strengthen financial inclusion and broaden the investor base.
Shares of SBI Funds Management were listed on the National Stock Exchange (NSE) at Rs 613.30 per share, higher than its IPO price of Rs 574 per share.
The company’s Rs 9,812.91 crore initial public offering (IPO), which was open from July 14 to July 16, was subscribed 41.66 times.
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