SBI investors will have a reason to throw a party as the bank’s subsidiary, SBI Funds Management, is preparing for an IPO. SBI’s Chairman CS Shetty has recently indicated that the mutual fund company might be listed in the coming 12 months.

The company, SBI Funds Management Limited that deals with assets and mutual funds for SBI, has been widely speculated as the IPO candidate. In the interview with The Economic Times, Shetty made it clear that the current attention is only on the IPO listing of SBI Mutual Fund and there are no immediate plans for further share sales. He also pointed out that SBI will not require any new capital for at least the next five years.

SBI and Amundi India, its joint venture partner, will both take part in the IPO. SBI intends to divest 3,20,60,000 shares or 6.3% of its ownership in the company while Amundi India Holding will release 1,88,30,000 shares or 3.7% of its stake. Investors cannot wait for the IPO, which is predicted to be a big hit due to SBI’s brand and the recent successful IPOs in India like Tata Capital, Bajaj Housing Finance, and Meesho.

The decision of SBI demonstrates the bank’s ongoing effort to be a significant player in the mutual fund and asset management sector thus providing investors a delightful opportunity in the coming year.