The State Bank of India (SBI), the country’s largest lender, has announced plans to divest 3.2 crore equity shares — equivalent to a 6.3% stake — in its asset management arm, SBI Funds Management Limited (SBIFML), through an Initial Public Offering (IPO). The move, subject to regulatory approvals, marks the beginning of the listing process for India’s largest asset management company.
SBI’s joint venture partner, Amundi India Holding, will also divest 1.88 crore shares, representing a 3.7% stake. Together, the promoters will offload a total of 10% equity, or 5.08 crore shares, through the IPO, which is expected to be completed in 2026.
Founded in 1987 as India’s first non-UTI mutual fund, SBI Mutual Fund has grown into the largest player in the industry, with a market share of 15.55%. As of September 2025, the firm managed assets worth ₹11.99 trillion under mutual fund schemes and ₹16.32 trillion under alternate investment platforms. SBI currently holds a 61.91% stake in SBIFML, while Amundi owns 36.36%.
SBI Chairman Challa Sreenivasulu Setty said the listing would make SBIFML the third subsidiary of SBI to go public, after SBI Cards and SBI Life Insurance. “Given SBIFML’s strong performance and market leadership, this is an opportune time to launch the IPO process,” he said. “The listing will not only maximise value for existing shareholders but also broaden market participation and increase public visibility.”
Valérie Baudson, CEO of Amundi, described the IPO as a milestone that reflects the success of the partnership. “SBI Funds Management has leveraged SBI’s vast distribution network and Amundi’s global expertise to become an industry leader. The IPO will unlock the value created through this collaboration while reinforcing our long-term commitment to India’s fast-growing market,” she said.
