SBI to Sell 6.3% Stake in SBI Funds Management Through IPO
State Bank of India (SBI), the country’s largest bank, has approved the sale of 3.20 crore shares of its mutual fund arm, SBI Funds Management Ltd (SBIFML). This represents 6.30% of the company’s total equity. The shares will be sold through an Initial Public Offering (IPO), which will take place after all required regulatory approvals.
SBI’s joint venture partner, Amundi India Holding, will also sell 1.88 crore shares, equal to 3.70% of SBIFML’s equity. In total, 10% stake, or 5.09 crore shares, will be offered in the IPO. Both promoters expect the listing process to be completed in 2026.
SBI Mutual Fund was set up in 1987 and became India’s first non-UTI mutual fund. In 1992, SBI created SBI Funds Management Ltd as a wholly owned subsidiary to manage these funds. Today, SBI holds 61.91% stake in SBIFML, while Amundi holds 36.36%.
SBIFML is currently the largest asset management company (AMC) in India, with a market share of 15.55%. It manages ₹11.99 trillion in quarterly average assets (Q2 FY26) under SBI Mutual Fund schemes and ₹16.32 trillion in alternate investment assets as of 30 September 2025.
What SBI Says
SBI Chairman Challa Sreenivasulu Setty said SBIFML will become the bank’s third listed subsidiary after SBI Cards and SBI Life. He said the company’s strong performance and leadership make this a good time to launch the IPO. He added that the listing will help unlock value for existing investors, attract new shareholders, and increase awareness among retail investors.
What Amundi Says
Amundi CEO Valérie Baudson said SBIFML has become a market leader by combining SBI’s wide distribution network with Amundi’s global asset-management expertise. She added that the IPO will unlock the value created by both partners, who will continue their long-term collaboration in India’s fast-growing investment market.
