SBI to divest 6.3% stake in SBI Funds Management via IPO

State Bank of India (SBI) on Thursday announced plans to divest 3,20,60,000 equity shares, representing 6.3 per cent of the total equity capital of SBI Funds Management Ltd (SBIFML), through an Initial Public Offering (IPO), subject to regulatory approvals.

Amundi India Holding, the other promoter of SBIFML, will offload 1,88,30,000 equity shares, equivalent to 3.7 per cent of the total equity capital. In total, 5,08,90,000 shares, representing 10 per cent of SBIFML's equity, will be listed. Both promoters have jointly initiated the IPO process, which is expected to be completed in 2026.

SBI Mutual Fund, established in 1987 as India's first non-UTI mutual fund, is sponsored by SBI. In 1992, SBI Funds Management Ltd was incorporated as a wholly-owned subsidiary of SBI to serve as the investment manager for SBI Mutual Fund. Currently, SBI and Amundi India Holding hold 61.91 per cent and 36.36 per cent stakes in SBIFML, respectively.

SBIFML is the country's largest asset management company (AMC), commanding a market share of 15.55 per cent with a Quarterly Average Assets Under Management (QAAUM) of Rs 11.99 lakh crore for Q2 FY2025-26 and assets under management (AUM) of Rs 16.32 lakh crore under alternates as of September 30, 2025.

SBI Chairman Challa Sreenivasulu Setty said, "SBI Funds Management Ltd will be the third subsidiary of SBI to be listed after SBI Cards and SBI Life Insurance. Considering SBIFML's sustained strong performance and market leadership, it is an opportune time to launch the IPO process. The IPO will maximize value for stakeholders, create opportunities for investors, and enhance the company's public visibility."

Valerie Baudson, Chief Executive Officer (CEO) of Amundi, added, "Over the years, SBI Funds Management Ltd has established itself as the leader in India's asset management industry. This IPO will unlock the value jointly created by SBI and Amundi, which will continue their long-term partnership in India's fast-growing market."