State Bank of India (SBI) share price fell 1.62% on NSE in Tuesday’s trading session as SBI Funds Management IPO opened for subscription today, 14 July.
SBI shares opened at ₹1,033.30 today, as compared to previous close of ₹1,037 on Monday. The stock touched an intraday low of ₹1,026 on 14 July.
Why is SBI share price in focus?
SBI Funds Management, which operates under the SBI Mutual Fund brand, is a joint venture between the State Bank of India and Amundi. SBI owns a 61.86% stake in the company, while Amundi holds the remaining 38.14%.
A successful listing of SBI Funds Management could benefit SBI by unlocking the value of its investment, improving investor sentiment, and potentially increasing the market valuation of its stake in the asset management company.
As per the red herring prospectus (RHP), the bank acquired these shares at a weighted average cost of just ₹0.15 apiece, taking its total investment to around ₹19 crore.
At the upper end of the IPO price band, the value of SBI’s stake is estimated at nearly ₹68,670 crore, representing a gain of about 3,600 times its original investment cost.
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.
