Top lender State Bank of India on Wednesday approved the sale of an up to 8.25% 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% stake in the company, while U.S.-based T Rowe Price owns 26%.
Bloomberg reported in October that UTI AMC had picked Citigroup Inc and ICICI Securities Ltd for its IPO, which could raise about 26 billion rupees ($362.27 million) and would see existing shareholders sell a combined 30% stake.
The asset manager is eyeing a valuation of about 100 billion rupees in its IPO, newspaper Business Standard had reported last month.