The State Bank of India is selling a 6.3 per cent stake in SBI Funds Management through the IPO of the subsidiary company. In an exchange filing, the State Bank said that the Executive Committee of the Central Board has approved the divestment of 3.206 crore shares of SBI Funds Management.
The banker added that the SBI Funds Management IPO is subject to approval from regulatory authorities.
“Apart from maximizing value realization for the existing stakeholders, the IPO will create opportunities for the general shareholders, broaden market participation and lead to increased awareness of products to a wider set of potential investors.” SBI Chairman, Challa Sreenivasulu Setty, said in a statement.
SBI Funds Management IPO likely in 2026
SBI Funds Management, a joint venture between SBI and French fund management firm Amundi, oversees mutual funds and investment portfolios for retail and institutional investors. The State Bank of India, the largest bank in the country, currently holds a 61.90 per cent stake in SBIFML. SBI said that in FY25, it earned a total of Rs 4,230.92 crore in income from its stake in SBIFML.
French asset management major AMUNDI Asset Management hold a 36.36 per cent stake in SBI Funds Management. SBI said that AMUNDI India is also selling 3.7 per cent of its stake in SBIFML, representing 1,88,30,000 equity shares
State Bank and Amundi India, both promoters of SBIFML, have jointly initiated the IPO, which is expected to be completed in 2026.
SBI Fund Management business
SBIFML is the largest asset management company in the country, with a market share of 15.55 per cent, managing a Quarterly Average Assets Under Management of Rs 11.99 trillion across various schemes of SBI Mutual Funds. It has an AUM of Rs 16.32 trillion as of the end of the September quarter.
Chairman Setty said that SBI Funds Management will be the third subsidiary of the bank to be listed, following SBI Cards and SBI Life Insurance. “Considering SBIFML’s sustained strong performance and market leadership over the years, it is considered an opportune time to launch the IPO process”, Setty added.