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Reducing stake in UTI AMC a strategic move: Dinesh Kumar Khara, SBI

SBI bringing down its stake in UTI AMC to below 10%

ET Now|
Dec 06, 2019, 10.05 AM IST
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We are hoping that we would be in a position to close it within this financial year, says Dinesh Kumar Khara, MD, SBI. Excerpts from an interview with ETNOW.

Is SBI offloading stake in UTI AMC and divesting 8.5% via IPO?
As far as SBI’s take is concerned, we were holding 18% in UTI AMC and we are bringing it down to below 10%. That decision has been taken by our board and we have communicated it to the company as well.

Would there be a decision later on bringing down the rest of the stake as well?
Yes, that is right. Much of it will depend upon how the markets pan out.

What you are looking to raise from this listing any numbers that have been discussed?
It is too early. We have to gauge investors’ minds and then only will be in a position to understand it. It is more like a strategic decision to disinvest in this particular company.

Do you have similar plans to divest from critical stakes in some of the other holdingsas well?
All these decisions are dependent upon how these companies have panned out. There is the other stake sale which we are doing in connection with SBI Cards. There also, we are offloading up to 4%. It is not that we have any particular number in our mind, but we feel that where the companies have grown big enough, they should be exposed to public investment as a strategy.

Which other companies are on your list where SBI holds stake?
In the SBI Group companies, there is life insurance, which has already gone public; cards business is up now. Likewise, we have got SBI General, SBI Asset Management company which is a mutual fund and likewise we have got SBI Capital Markets, we have got broking company, we also have got a factoring company, we have got a custodial company. We are present in all the sub segments of the financial sectors. We are the manufacturers of all the products in the financial sector.

Other than the SBI stable?
We have not really taken any call on things other than the SBI stable. For the other companies also, we will be tapping the market at the opportune time. But for the current financial year, we have only SBI Cards lined up.

For the divestment of the UTI AMC stake, do you have any kind of timeline in mind?
We are hoping that we would be in a position to close it within this financial year, but much of it would depend on the steps taken by UTI and the asset management company.

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