- Public issue to offload over 5 crore shares jointly by SBI and Amundi India Holding
- SBI Chairman Setty: “IPO will maximize stakeholder value and broaden investor participation”
- Move marks next major listing milestone after SBI Life and SBI Cards
NE ECONOMIC BUREAU
MUMBAI, NOV 6
In a landmark decision set to reshape India’s financial markets, the State Bank of India (SBI) — the nation’s largest lender — has approved the divestment of 3,20,60,000 equity shares, representing 6.3007% of the total equity capital of SBI Funds Management Limited (SBIFML), through an Initial Public Offering (IPO). The move is subject to regulatory approvals and will mark another major milestone in SBI’s journey of unlocking value from its subsidiaries.
Amundi India Holding, the co-promoter of SBIFML, will also divest 1,88,30,000 shares, equivalent to 3.7006% of equity, bringing the total stake on offer to 10.0013% (5,08,90,000 shares). Both promoters have jointly initiated the IPO process, which is expected to conclude in 2026.
Founded in 1987, SBI Mutual Fund was India’s first non-UTI mutual fund, sponsored by the State Bank of India. Subsequently, SBI Funds Management Limited was incorporated in 1992 as a wholly owned subsidiary of SBI, managing investment solutions across multiple asset classes. Today, SBI and Amundi India Holding hold 61.91% and 36.36%, respectively, in SBIFML.
SBIFML is India’s largest asset management company (AMC), commanding a 15.55% market share with Quarterly Average Assets Under Management (QAAUM) of ₹11.99 trillion for Q2 FY2025-26 and total AUM of ₹16.32 trillion under alternates as of September 30, 2025.
“SBI Funds Management Limited will be the third subsidiary of SBI to be listed after SBI Cards and SBI Life Insurance,” said SBI Chairman Challa Sreenivasulu Setty.
“Considering SBIFML’s sustained strong performance and market leadership, this is an opportune time to launch the IPO. It will not only maximize value realization for stakeholders but also broaden investor participation, enhance product visibility, and reinforce the company’s leadership in India’s asset management industry.”
Echoing similar optimism, Valérie Baudson, CEO of Amundi, said: “SBI Funds Management has grown into India’s leading AMC, leveraging SBI’s vast distribution network and Amundi’s global asset management expertise. This IPO will unlock the value jointly created by both partners and strengthen our successful long-term collaboration in a fast-growing Indian market with immense potential.”
With this move, SBIFML becomes the third major SBI subsidiary to enter the public market, following the successful listings of SBI Life Insurance and SBI Cards & Payment Services, marking yet another stride in SBI’s strategic roadmap of value creation, market leadership, and financial innovation.
