SBI to divest stake in fund management arm via IPO

State Bank of India (SBI) has approved the divestment of 32,060,000 equity shares in SBI Funds Management Limited (SBIFML) through an initial public offering (IPO). This stake represents 6.3007% of SBIFML's total equity capital, and the IPO is subject to regulatory approvals.

Amundi India Holding, the other promoter, will also divest 18,830,000 equity shares, equivalent to 3.7006%. This brings the total stake to be listed to 10.0013%, or 50,890,000 shares. The joint IPO is expected to conclude in 2026.

SBIFML, with a 15.55% market share, is currently the largest asset management company in India. It manages quarterly average assets under management (QAAUM) of Rs.11.99 trillion for Q2 FY2025-26 and AUM of Rs.16.32 trillion under alternates as of September 30, 2025. This listing will mark SBIFML as the third SBI subsidiary to go public, following SBI Cards and SBI Life Insurance.