State Bank of India (SBI), the largest lender in the country, is set to divest a 6 percent stake, amounting to 3.20 crore shares, in its subsidiary, SBI Fund Management, through an Initial Public Offering (IPO). The other promoter, Amundi India Holding, plans to sell 3.70 percent, or 1.88 crore shares, of its equity.
The IPO has been jointly initiated by both promoters and is expected to be completed within the year, according to SBI. An IPO framework agreement is anticipated to be executed on Monday.
This represents SBI’s second attempt to list its mutual fund arm on a stock exchange. The first attempt occurred in December 2021, when SBI aimed to raise approximately ₹8,500 crore through an IPO, but the plans were shelved due to market volatility.
SBI Mutual Fund is the largest asset management company in India, holding a market share of 15.55 percent and managing Quarterly Average Assets Under Management (AUM) of ₹11.99 lakh crore across various schemes. Additionally, the firm has an AUM of ₹16.32 lakh crore under Alternates as of the end of September.
Established in 1987, SBI Funds Management was the first non-Unit Trust of India (UTI) mutual fund in the country. It became a wholly owned subsidiary of SBI in 1992, serving as the Investment Manager for SBI Mutual Funds to offer investment solutions across diverse asset classes.
Currently, SBI holds a 62 percent stake in SBI Funds Management, while Amundi India Holding owns 36 percent. Challa Sreenivasulu Setty, Chairman of SBI, confirmed that the mutual fund division will be the third SBI subsidiary to list, following SBI Cards and SBI Life Insurance.
Setty emphasized that the IPO aims to maximize value for existing stakeholders while creating opportunities for general shareholders, enhancing market participation, and increasing product awareness among potential investors.
SBI Life went public in 2017, and its ₹8,400-crore IPO was oversubscribed by 3.58 times. SBI Card was listed in March 2020, just prior to the onset of the COVID-19 pandemic, through a ₹10,354-crore public offering.
Valerie Baudson, CEO of Amundi, remarked that over the years, SBI Funds Management has cemented its position as a leader within India’s asset management sector. He noted that it has effectively leveraged SBI’s extensive distribution network and Amundi’s global asset management experience. The upcoming IPO is seen as a way to unlock the value created by the collaboration between SBI and Amundi, with both entities committed to their long-standing partnership in a rapidly growing Indian market that holds significant growth potential.
Published on November 6, 2025.
