SBI allows divestment of 6% stake in SBI Funds Management via IPO

New Delhi: State Bank of India (SBI) on Thursday said it has approved divestment of about 6 per cent stake in its subsidiary SBI Funds Management Ltd (SBIFML) through initial public offering (IPO).

SBIFML, one of the sponsors of SBI Mutual Fund, will be the third subsidiary of SBI to be listed after SBI Cards and SBI Life Insurance.

SBI approves offloading of 3,20,60,000 equity shares, being equivalent to 6.3007 per cent of total equity capital of (SBIFML) through IPO, subject to regulatory approvals, the country’s biggest lender SBI said in a regulatory filing.

Amundi India Holding, the other promoter of SBIFML, will divest 1,88,30,000 equity shares, being equivalent to 3.7006 per cent of total equity capital of SBIFML, with a total of 10.0013 per cent stake comprising 5,08,90,000 shares to be listed, it said. Both the promoters of SBIFML have jointly initiated the IPO, which is likely to be completed in 2026, it said.

SBI Mutual Fund was established in the year 1987 with SBI as the sponsor and was the first non-UTI mutual fund in India.

In 1992, SBI Funds Management Limited was incorporated as a wholly owned subsidiary of SBI as Investment Manager for SBI Mutual Funds to provide investment solutions across different asset classes, it said.

Presently, it said, SBI and Amundi India Holding hold 61.91 per cent and 36.36 per cent stake in SBIFML, respectively.

SBIFML is the largest asset management company in the country with a market share of 15.55 per cent, managing Quarterly Average Assets Under Management (QAAUM for Q2 FY2026) of Rs 11.99 lakh crore under various schemes of SBI Mutual Funds and AUM of Rs 16.32 lakh crore under alternate funds as on September 30, 2025.

SBI Chairman Challa Sreenivasulu Setty said, “Considering SBIFML’s sustained strong performance and market leadership over the years, it is considered an opportune time to launch the IPO process. Apart from maximising value realisation 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.”

This will further enhance the public visibility of the company, thereby reinforcing its position as a leading player in the asset management industry, he added.

“Over the years, SBIFML has established itself as the leader in India’s asset management industry. It has grown successfully, leveraging on the powerful distribution capacity of SBI’s network in India, combined with Amundi’s global expertise in asset management,” Valérie Baudson, CEO of Amundi, said.

This IPO will allow to unlock the value jointly created by SBI and Amundi, which will continue their successful long-term partnership in a fast-growing Indian market that presents significant development potential, he said.

The total income of SBI Mutual Fund was Rs 4,230.92 crore in FY25, 0.64 per cent of the total income of SBI Group.

The IPO framework agreement is expected to be executed on November 10, 2025, it added.