SBI Fund Management JV partner Amundi Asset Management says no plans to exit post listing of SBI AMC

Amundi Asset Management, the foreign partner in SBIFM which has a 36.33% stake, has categorically denied the possibility that they could consider existing or unlocking value in the joint venture, now that the AMC got listed today at the stock exchanges.

Amundi officials were repeatedly quizzed by media on whether there was a possibility of an exit, post listing. But the Amundi Asset Management officials clearly denied this.

"It has been a long journey between Amundi and SBIFM. But today, I can say that this is only the beginning. We are a very happy shareholder of SBIFM and we continue to build this partnership to grow together and be there with SBI for a very long time," Nicholas Calcoen, deputy CEO of Amundi said.

The SBIFM stock debuted at Rs613.30, reflecting a gain of 6.85% at the NSE, but it finally closed down 3.55% at Rs609.75.

When asked on how SBI and Amundi would take the partnership to the next level, State Bank of India chairman Challa Sreenivasulu Setty said: "SBIFM did not need the money. But both the partners believe that non-listing of such a large AMC is not systematically good. We wanted to bring it to the stock markets. In the roadshows, Amundi officials highlighted that not only their best of international practices were brought to India, now SBIFM and best practices will be taken internationally."

India's largest private lender SBI now has a 55.5% stake in SBI Funds Management (SBIFM). 

Amundi's Calcoen further said: "We will continue to develop and ensure that we will continue to bring best practices and expertise in asset management to SBIFM . But there is growing interest we see from international investors for Indian assets."

SBI has offloaded over 6% stake in SBIFM, through an offer for sale and now highlighted several challenges and opportunities as the mutual fund embarked on a new journey.

"We are possibly the only mutual fund of size which is strong even 'Beyond 30' (called B30), where we can provide a savings and investment combo," SBI chairman , told Fortune India. "This is both a challenge and an opportunity. We don't want to go on the trodden path," Setty said, referring to the fact that they had sizeable scale of investors beyond the 30 metropolitan areas.

"One of the focus areas will be technology. AI is there but the bigger challenge will be to invest further in technology," Setty said.

Ashwini Kumar Tewari, SBI's managing director (corporate banking and subsidiaries) added: "SBI FM has always had strong practices and now [that it is listed] will be questioned. We must balance profitability with reach. We will also need to develop some segments of the mutual fund industry. There are opportunities and challenges, in the form of new age products, AIFs and passive funds which all need to be scaled up."

"Anyway, the industry is moving in that direction. One of the other areas of challenge is finding and grooming the right talent. This is a small industry. We have to look in house and groom people to take up responsibility. That is how the industry will also grow," Tewari told Fortune India.