SBI to divest more than 6% equity in SBIML through IPO

India’s largest lender, State Bank of India (SBI), announced its intention to sell the shares in its asset management company, SBI Funds Management Limited (SBIFML), through an Initial Public Offering (IPO). This makes SBIFML the third SBI subsidiary to be publicly listed, after SBI Cards and SBI Life Insurance.

SBI currently holds 61.91 per cent stake and Amundi India Holding holds 36.36 per cent in SBIFML, which is famed for being the largest asset management company in India.

Through this IPO process, SBI will divest 3,20,60,000 equity shares, representing 6.3 per cent of the total equity capital of SBIFML, while Amundi plans to divest 1,88,30,000 equity shares, representing 3.7 per cent. Combined, 5,08,90,000 shares will be offered to the public, amounting to a total of about 10 per cent of SBIFML’s equity.

SBIFML market presence

SBI Funds Management Limited commands a 15.55 per cent market share, managing quarterly average assets (QAAUM) of nearly Rs 11.99 trillion under SBI Mutual Fund schemes and Rs 16.32 trillion in alternate assets as of September 2025.

Established in 1987, SBIFML broke new ground as the first non-UTI mutual fund and has since developed a reputation for strong performance and operational leadership.

SBI Chairman Challa Sreenivasulu Setty commented, “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. This will further enhance the public visibility of the Company, thereby reinforcing its position as a leading player in the asset management industry.”

SBIFML is the current leader in the Indian asset management industry.

Amundi CEO Valérie Baudson stated, “This IPO will allow [us] 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.” 

Business