No plans to sell more stake in SBI Funds Management, says State Bank of India Chairman

State Bank of India, the country's largest lender, has no plans to sell any further stake in SBI Funds Management, its asset management arm, SBI's top official said on Tuesday.

"The whole dilution process will depend on the holding norms of the Securities and Exchange Board of India. This is true for Amundi also. So, we don't intend to look for any further dilution," C. S. Setty, the chairman of SBI, told reporters post-listing of SBI Funds Management.

The fund manager made a tepid debut on the stock markets on Tuesday, July 21, listing at ₹613.30 on the NSE, a premium of 6.85% over its issue price of Rs 574. It eventually closed the day at ₹609.75.

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The SBI Funds Management IPO was a completely offer-for-sale (OFS), with SBI selling around a 6.3% stake (128.3 million shares) in the company and its partner Amundi offloading around 3.7%. 

Post-listing, SBI will still hold 55.46%, and Amundi will have a 32.56% stake. France's Amundi is among the largest asset managers in Europe and remains bullish on India. 

"There are tremendous opportunities with more and more investments from retail investors, particularly in asset management products, coming from the development of retirement solutions, coming from passive management solutions and coming also from increased interest from international investors. We will continue to support the management of SBI Funds Management in any way we can in the journey," said Nicolas Calcoen, deputy CEO of Amundi. 

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SBI Funds Management manages the country's largest mutual fund with quarterly average assets under management of ₹12.50 lakh crore in financial year 2026. The fund manager sees a long runway to grow. 

"Just like SBI is banker to every Indian, we would like to be the fund manager to every Indian. India has a population of 1.4 billion, but only 10 million are in investment portfolios. We have a lot of way to go around towns and cities to bring another 100 million in 5 years’ time to this whole investment world," said Debasish Mishra, MD and CEO, SBI Funds Management. 

The company is making major investments in alternative investment funds (AIFs) as it looks to scale up its overall business, officials said. It will also look to expand the basket of exchange-traded funds (ETFs) and passive funds.