SBI Mutual Fund targets to raise about ₹4,000 crore from the new fund offer of Energy Opportunities Fund which will open for subscription on Tuesday.

The one-of-its-kind thematic fund will invest in energy sector in an optimal mix of domestic and/or overseas companies engaging in activities such exploration, production, distribution, transportation and processing of traditional and new energy including but not limited to sectors such as oil & gas, utilities and power.

Shamsher Singh, Managing Director & Chief Executive Officer, SBI Funds Management said the energy sector is a multi-decade Atmanirbhar Bharat story as the country aims to move from being energy deficient to self-sufficient.

Tailwinds

India’s commitments towards Green Energy initiatives like COP26 (Panchamrit Strategy), the Green Hydrogen Mission, the Ethanol Blending Programme along with focused policy initiatives in the traditional energy sectors provide sufficient tailwinds for the energy sector to grow in line with our country’s needs, he said.

DP Singh, Deputy MD & Joint CEO, SBI Funds Management said the sector has seen rapid strides in terms of infrastructure and policy reforms, helping improve the profitability of the sector. The fund house has identified 95 potential stocks for investment and will have a portfolio of 20-25 high growth conviction stocks.

Historically, energy consumption in an economy is directly linked to economic growth and with India expected to be the third largest economy in the world, its per capita energy consumption could also witness significant rise. There are opportunities across the entire spectrum of the energy value chain, he said.

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