SBI board has allowed offloading 6% in SBI funds management via the initial share-sale route.

“Pursuant to Regulation 30 and other applicable provisions of SEBI (LODR) Regulations, 2015, we advise that the Executive Committee of Central Board of the Bank has accorded approval for exploring possibilities to offload 6% stake of the Bank in SBI Funds Management Private Limited through IPO route, subject to receipt of all regulatory approvals," the company said in a regulatory filing.

Bloomberg, in February 2021, had reported that the nation’s largest bank is exploring possibilities to raise $1 billion via share sale. SBI’s mutual fund currently has a valuation of $7 billion, it said.

SBI Funds Management Pvt Ltd (SBIFMPL) is a strategic partnership between SBI and AMUNDI (France), a French asset manager.

SBI owns a 63 per cent stake in SBIFMPL, and AMUNDI Asset Management owns 37 per cent in the fund house via its wholly-owned subsidiary -- Amundi India Holding, according to the SBI Mutual Fund website.

SBI Fund Management will be the fifth fund house to get listed on the Indian stock exchanges besides HDFC MF, Nippon Life MF, UTI MF and Aditya Birla Sun Life MF.