SBI Sells Stake in SBI Funds Management

SBI sold 1.42% stake in SBI Funds Management Ltd.

Details

• Value: ₹1,655 crore
• Shares: 2.88 crore
• Buyers: 30 institutional investors
• Price: ₹574/share

IPO

SBIFM IPO size:
₹11,700 crore

Important Concept

The IPO is an Offer for Sale (OFS).

Therefore:

SBIFM itself does NOT receive IPO proceeds.

The selling shareholders receive the money.

Ownership

SBI and Amundi India Holding together plan to divest approximately 10%.

Prelims

OFS → existing shareholders sell shares → company generally doesn't receive the sale proceeds