Two of the top mutual fund houses in India - Aditya Birla Sun Life (ABSL) and SBI Mutual Fund (SBI MF) are gearing up to go public, according to media reports. While the ABSL IPO is likely to be launched in the June quarter, SBI MF's plan is still in the early stage.
According to a report in Mint, ABSL is in talks with potential bankers to raise Rs.5,000 crore through the IPO to fund expansion. Sources told the newspaper that the AMC could offer around 20% shares to the public. “The value of the business is pegged at around Rs.26,000 crore," the report said.
SBI, on the other hand, plans to kick off the process in the next few months after discussions with its board and shareholder Amundi Asset Management, Bloomberg reported.
SBI MF is a joint venture with SBI holding 63% stake; the balance 37% is owned by Paris-based Amundi.
This is not the first time that ABSL's IPO is in news. In October last year, there were reports that the fund house is in exploratory talks to raise up to Rs 2,500 crore through IPO. The company was said to have met about half a dozen investment banks for the purpose.
ABSL MF could not be reached while SBI MF declined to comment.
SBI's Mutual Fund is the largest in India with Rs.4.56 lakh crore of AUM as on December 2020. Aditya Birla Sun Life is at fourth spot with around Rs. 2.55 lakh crore of AUM.
