State Bank of India (SBI) has approved divesting a 6.3007% stake in SBI Funds Management Limited through an Initial Public Offering (IPO). The decision, made on November 6, 2025, involves selling 3,20,60,000 equity shares. The IPO is subject to regulatory approvals. The aim is to unlock value in its asset management arm, while still maintaining a significant stake in the entity.
SBI Funds Management IPO
State Bank of India (SBI) has greenlit plans to reduce its holding in SBI Funds Management Limited through an IPO. The decision was formalized during the meeting of the Executive Committee of the Central Board (ECCB) on November 6, 2025.
Details of the Divestment
The approved plan involves divesting 3,20,60,00,000 equity shares, representing 6.3007% of the total equity capital of SBI Funds Management Limited. The execution of the IPO is contingent upon securing all necessary regulatory approvals.
Impact of the Stake Sale
The financials of SBIFML for FY 2024-25 include a total income of Rs 4,230.92 Cr, which is 0.64% of SBI Group’s total income. Reserve & Surplus for SBIFML stands at Rs 5,108.56 Cr which is 1.19% of total reserve & surplus of SBI Group.
Key Dates and Considerations
The IPO Framework Agreement is expected to be executed on 10.11.2025. The anticipated completion date for the stake sale/disposal is projected for the year 2026. The consideration received from this sale will be finalized in consultation with all stakeholders. The divestment of shares will be executed through the Initial Public Offer process.
Source: BSE
