State Bank of India is reportedly considering selling its 10% stake in its proposed holding company for its insurance and mutual fund businesses to institutional investors, according to the Business Standard.
The publication stated that the group’s insurance and mutual fund businesses are valued at approximately INR16,000 to 20,000 crore. As a result, the 10% stake sale could generate around INR2,000 crore, or, according to the Iris News Digest, will be worth INR20 billion.
Citing OP Bhatt, chairman of the bank, as a source, the Business Standard revealed that the finance group had been planning on selling the stake to four investors before listing it.
According to the news site, the proposed holding company will be established to help win back lost market share over the past decade and is expected to be set up within the next two to three months.