State Bank of India (SBI) is considering bringing two major subsidiaries, SBI General Insurance and SBI Mutual Fund, to the stock market through IPOs. The bank's Chairman, CS Setty, stated that both companies are b candidates for listing, although a timeline has not been determined.
New Delhi: During the inauguration of SBI General Insurance's specialized health branch in Hyderabad, SBI Chairman CS Setty made a significant statement, saying that the bank is seriously considering bringing the Initial Public Offerings (IPOs) of its two major subsidiaries, SBI General Insurance and SBI Mutual Fund. He also clarified that no specific timeline has been set at present, but both companies are fully ready and suitable for listing in the market.
What did the Chairman say about the IPO plan?
Setty said, "We have two companies in our portfolio, SBI Mutual Fund and SBI General Insurance, which we are seriously considering for IPOs. Both these companies are fully suitable for listing." However, he also clarified that no timeline has been fixed yet, and the process is in the initial stages.
This move, if implemented, could create an opportunity for investors to invest in two new b and profitable companies.
Introduction and Market Position of both Companies
- SBI Mutual Fund: Is one of India's top mutual fund companies, managing AUM (Assets Under Management) of over ₹8 lakh crore. It is popular among both institutional and individual investors.
- SBI General Insurance: SBI General Insurance has rapidly established itself in India's general insurance sector. It offers health, motor, travel, and other general insurance products. Its reach is expanding rapidly across the country.
Impact of US Tariffs: What did Setty say?
During the discussion, Setty also reacted to the recent increase in tariffs by the US on certain imported products. He said that due to India's geographical and sectoral diversity, the direct impact of this will be limited.
However, he also acknowledged that sectors such as chemicals, textiles, and gems & jewelry, which mainly export to the US, may be affected to some extent.
Setty said, "The most important thing is that the uncertainty related to tariffs should end soon. If this situation persists for a long time, the bank is also ready to support the concerned sectors."
What are the benefits of listing in the market?
- Through the IPO, SBI will get an opportunity to unlock the value of its group portfolio.
- This can also help the government in achieving its disinvestment targets.
- Listing of both companies will give investors confidence of better transparency and governance.
Experts believe that the IPO of SBI Mutual Fund will be a significant event in the country's mutual fund sector, as the sector is growing rapidly. At the same time, SBI General Insurance can also become a center of attraction, given the demand in health insurance.
