New IPO Alert: SBI to divest 6.3% stake in SBI Funds Management via public offer

SBI Funds Management IPO: State-run lender State Bank of India (SBI) on Thursday, November 6, said that it has approved divestment of 3,20,60,000 equity shares, equivalent to 6.30% of total equity capital of SBI Funds Management Ltd via an initial public offering.

In an exchange filing, the company said, "the Executive Committee of the Central Board (ECCB) of State Bank of India in the meeting held on 6th November, 2025 has accorded approval to divest 3,20,60,000 equity shares, being equivalent to 6.3007% of total equity capital of SBI Funds Management Limited (SBIFML) through Initial Public Offering, subject to all regulatory approvals."

Amundi India Holding, the other promoter of SBIFML will offload 1,88,30,000 shares, representing 3.70% of total equity capital of SBIFML.

SBI Funds Management Ltd (SBIFML), which operates under the name SBI Mutual Fund, offers various products like mutual funds (equity, debt, hybrid, etc.), exchange-traded funds (ETFs), and other solutions for institutional and individual investors. It is a joint venture between SBI and Amundi India Holding, who hold 61.91% and 36.36% stake in SBIFML respectively.

SBIFML is the largest asset management company (AMC) in India with market share of 15.55% managing quarterly average assets under management (QAAUM for Q2 FY2025-26) of ₹11.99 trillion under various schemes of SBI Mutual Funds and AUM of ₹16.32 trillion under Alternates as on September 30, 2025, SBI said in an exchange filing.

SBI share price

Following the announcement, shares of State Bank of India are trading 0.15% lower at Rs 959.05 per unit on the National Stock Exchange at 2:00 pm.

SBI Chairman Challa Sreenivasulu Setty said, “SBI Funds Management Limited will be the third subsidiary of SBI to be listed after SBI Cards and SBI Life Insurance. Considering SBIFML’s sustained strong performance and market leadership over the years, it is considered an opportune time to launch the IPO process. Apart from maximising value realisation for the existing stakeholders, the IPO will create opportunities for the general shareholders, broaden market participation and lead to increased awareness of products to a wider set of potential investors."

Valerie Baudson, Chief Executive Officer of Amundi, "This IPO will allow to unlock the value jointly created by SBI and Amundi, which will continue their successful long-term partnership in a fast-growing Indian market that presents significant development potential."