Top lender State Bank of India on Wednesday approved the sale of an up to 8.25 per cent stake in mutual fund UTI Asset Management Company (UTI AMC) through an initial public offering.
SBI will cut its stake in UTI AMC through an offer for sale of up to 10.5 million shares, the state-run lender said in a filing to exchanges.
SBI, Life Insurance Corporation of India, Bank of Baroda and Punjab National Bank each hold an 18.24 per cent stake in the company, while US-based T Rowe Price owns 26 per cent.
Bloomberg reported in October that UTI AMC had picked Citigroup Inc and ICICI Securities Ltd for its IPO, which could raise about Rs 2,600 crore ($362.27 million) and would see existing shareholders sell a combined 30 per cent stake.
The asset manager is eyeing a valuation of about Rs 10,000 crore in its IPO, newspaper Business Standard had reported last month.