SBI is set to divest a 6.3% stake in its mutual funds arm along with Amundi’s 3.7% stake via IPO, valuing SBI Funds Management around ₹1 trillion. The IPO, expected in 2026, will be India’s largest asset management listing, aiming to broaden market participation and unlock shareholder value.
State Bank of India (SBI), India’s largest lender, is gearing up to take its mutual funds division public via an initial public offering (IPO) expected in 2026. SBI Plans to divest 6.3% of its stake in SBI Funds Management Ltd (SBIFML), while its joint venture partner Amundi will offload around 3.7%, jointly offering a 10% stake in the company valued at approximately ₹1 trillion.
Key Highlights:
IPO Size and Timing: The IPO is anticipated to raise significant capital, marking the largest-ever asset management company listing in India, with the framework agreement expected by November 2025 and completion slated for 2026.
Company Leadership: SBIFML commands close to 15.55% market share with assets under management (AUM) of ₹11.99 lakh crore as of Q2FY26. It is the third SBI subsidiary to go public after SBI Cards and SBI Life Insurance.
Strategic Objectives: The listing aims to unlock shareholder value, enhance public visibility, and expand investor participation, leveraging SBI’s distribution network and Amundi’s global asset management expertise to fuel growth.
Market Context: SBI’s IPO move aligns with a robust Indian IPO market in 2025, witnessing record fundraising and a strong appetite for financial sector listings.
This IPO reflects SBI’s strategy of leveraging its asset management dominance to tap capital markets while fueling growth initiatives and diversifying ownership.
Sources: Business Standard, Moneycontrol, Economic Times, Reuters, Indian Express, Trak.in.