SBI to sell 6.3% stake in SBI Funds Management through IPO

State Bank of India on Thursday said it will sell a 6.3 per cent stake in SBI Funds Management through an initial public offering.

In a stock exchange filing, SBI said, “The Executive Committee of the Central Board (ECCB) of State Bank of India in the meeting held on 6th November, 2025, has accorded approval to divest 32,060,000 (32.06 million) equity shares, being equivalent to 6.3007 per cent of total equity capital of SBI Funds Management Limited through Initial Public Offering, subject to all regulatory approvals.”

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The IPO Framework Agreement is expected to be executed on November 10 and is expected to be completed in 2026, said SBI.

Currently, SBI holds a 61.9 per cent stake in SBI Funds Management, while Amundi has a 36.4 per cent stake.

“Amundi India Holding, the other promoter of SBIFML, will divest 18,830,000 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 50,890,000 shares to be listed,” the filing said.

Speaking on the development, SBI Chairman Challa Sreenivasulu Setty said, “SBI Funds Management Limited (SBIFML) 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 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.

Valérie Baudson, Chief Executive Officer of Amundi, commented, “Over the years, SBI Funds Management Limited has established itself as the leader in India’s asset management industry. It has grown successfully, leveraging the powerful distribution capacity of SBI’s network in India, combined with Amundi’s global expertise in asset management.

“This IPO will allow unlocking 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.”

Notably, as of 30th September 2025, SBIFML remains 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 Q2FY2025-26) of Rs 11.99 lakh crore under various schemes of SBI Mutual Funds and AUM of Rs 16.32 lakh crore under Alternates.