State Bank of India (SBI) has approved the divestment of 3,20,60,000 equity shares, representing 6.3007% of SBI Funds Management Limited (SBIFML), through an Initial Public Offering (IPO). The IPO is subject to regulatory approvals. Amundi India Holding will also divest 1,88,30,000 equity shares. The IPO is expected to be completed in 2026.
SBI to Reduce Stake in Asset Management Arm
SBI has decided to divest 3,20,60,000 equity shares, which is equivalent to 6.3007% of the total equity capital of SBI Funds Management Limited (SBIFML). This stake will be divested through an Initial Public Offering (IPO), subject to regulatory approvals.
Amundi India Holding to Participate in Divestment
In addition to SBI, Amundi India Holding, another promoter of SBIFML, plans to divest 1,88,30,000 equity shares, representing 3.7006% of SBIFML’s total equity capital. This brings the total stake offered in the IPO to 10.0013%, comprising 5,08,90,000 shares.
IPO Timeline
Both SBI and Amundi India Holding have jointly initiated the IPO, which is anticipated to be completed in 2026.
Background of SBI Mutual Fund
SBI Mutual Fund was established in 1987, with SBI as its sponsor, becoming the first non-UTI mutual fund in India. SBI Funds Management Limited was later incorporated in 1992 as a wholly-owned subsidiary, acting as the Investment Manager for SBI Mutual Funds.
SBIFML’s Market Position
SBIFML is the largest asset management company in India, holding a market share of 15.55%. As of September 30, 2025, it manages Quarterly Average Assets Under Management (QAAUM) of Rs. 11.99 trillion (Q2 FY2025-26) under various SBI Mutual Fund schemes and has Rs. 16.32 trillion in alternative assets.
Strategic Rationale
SBI’s Chairman, Shri Challa Sreenivasulu Setty, noted that SBIFML will be the third SBI subsidiary to be listed, following SBI Cards and SBI Life Insurance. The IPO aims to maximize value for stakeholders, broaden market participation, increase product awareness, and enhance the company’s public visibility within the asset management industry.
Amundi’s Perspective
Valérie Baudson, Chief Executive Officer of Amundi, highlighted SBIFML’s leadership in the Indian asset management industry, attributing its success to SBI’s distribution network combined with Amundi’s global expertise.
Source: BSE
