Upcoming IPO: SBI to Divest 6.3% Stake in SBI Funds Manage

State Bank of India (SBI), the country’s largest lender, has approved the divestment of 3,20,60,000 equity shares, representing 6.3007% of the total equity capital of SBI Funds Management Limited (SBIFML), through an Initial Public Offering (IPO). 

The offering, which will also see co-promoter Amundi India Holding offload 1,88,30,000 shares or 3.7006%, will collectively list a 10.0013% stake, subject to regulatory approvals.

SBI and Amundi India to Jointly Launch SBIFML IPO

Both promoters of SBI Funds Management Limited have jointly initiated the IPO process, which is expected to conclude in 2026. SBI currently holds a 61.91% stake in SBIFML, while Amundi India Holding owns 36.36%. The fund house, established in 1987 as India’s first non-UTI mutual fund, has since grown into the country’s largest asset management company.

SBIFML: India’s Largest Asset Manager

As of September 30, 2025, SBIFML managed Quarterly Average Assets Under Management (QAAUM) worth ₹11.99 trillion under SBI Mutual Fund schemes and an additional ₹16.32 trillion under Alternates assets. With a 15.55% market share, SBIFML leads India’s asset management industry, offering diversified investment solutions across asset classes. The IPO will mark SBI’s third subsidiary to be listed after SBI Cards and SBI Life Insurance.

Read More: SBI Becomes Special Category Client of India International Bullion Exchange!

IPO to Unlock Value and Broaden Investor Base

SBI Chairman Shri Challa Sreenivasulu Setty stated that the SBIFML IPO will not only enhance value realisation for stakeholders but also provide broader market participation opportunities. He added that the listing will further increase the company’s visibility and reinforce its leadership position in India’s rapidly growing asset management sector.

Amundi CEO Highlights Continued Partnership

Valérie Baudson, Chief Executive Officer of Amundi, noted that SBIFML’s success stems from the combination of SBI’s extensive domestic distribution network and Amundi’s global asset management expertise. She added that the IPO will help unlock the value jointly created by both partners while continuing their long-term collaboration in a fast-growing Indian market with significant potential.

Conclusion

The proposed IPO of SBI Funds Management Limited represents a strategic move by SBI and Amundi to unlock value in India’s largest asset management company. The divestment aligns with SBI’s broader strategy to strengthen its capital position while enhancing market access for investors in India’s booming mutual fund sector.

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