It's raining IPOs: Around 15 subsidiaries of PSU banks lined up for public issues; check details

On Sunday, the finance ministry asked public sector banks (PSBs) to look at monetising their investment in subsidiaries by listing them at bourses after further scaling up operations so that they realise a good return.

There are about 15 subsidiaries or joint ventures of PSBs lined up for initial public offerings (IPOs) or divestment in the medium to long term, PTI reported, quoting sources.

Wherever required, banks should invest funds to scale up operations of their subsidiaries or joint ventures, the PTI report said, adding that banks can look at unlocking value at an opportune time.

For example, State Bank of India (SBI), the country's biggest lender, may look at listing SBI General Insurance and SBI Payment Services in the future after they scale up their operations.

SBI General Insurance Company Ltd, incorporated on February 24, 2009, earned a profit of ₹509 crore for the financial year ended March 2025.

The general insurance arm of SBI has allotted 3,71,693 equity shares of ₹10 each during the year ended March 2025. Consequently, the stake of SBI in SBI General Insurance Company Ltd has reduced from 69.11% to 68.99%.

SBI Payment Services Pvt Ltd, which is in the merchant acquiring business, is 74% owned by SBI, and the rest with Hitachi Payment Services.

SBI Payments is one of the largest acquirers in the country, with more than 33.10 lakh merchant payment acceptance touch points as of March 31, 2024, including 13.67 lakh POS (point of sale) machines, deployed across geographies.

Meanwhile, Canara Bank has already initiated the process for the listing of the asset management joint venture Canara Robeco AMC. Besides, it is also planning a listing of its life insurance joint venture, Canara HSBC Life Insurance Company.

Meanwhile, seven initial public offerings (IPOs), including two mainboard issues of Crizac and Travel Food Services, will open for subscription in the week starting June 30.