SBI to Divest 6.3% Stake in SBI Mutual Fund Ahead of 2026 IPO; AMUNDI to Offload 3.7%

The State Bank of India (SBI) has announced plans to divest a 6.3 per cent stake in its mutual fund arm, SBI Funds Management Limited (SBIFML), through an initial public offering (IPO) expected to hit the market in 2026. The listing will mark SBI’s third major subsidiary to go public, following the successful debuts of SBI Cards and SBI Life Insurance.

In a stock exchange filing, the lender said, “The Executive Committee of the Central Board (ECCB) of State Bank of India has accorded approval to divest 3,20,60,000 equity shares, being equivalent to 6.3007 per cent of total equity capital of SBI Funds Management Limited through Initial Public Offering, subject to all regulatory approvals.”

Alongside SBI, AMUNDI India Holding, the French asset management giant and joint promoter of SBIFML, will offload 1,88,30,000 equity shares, representing 3.7006 per cent of the company’s equity. Together, the two promoters will divest a 10 per cent stake — amounting to 5,08,90,000 shares (50.8 million) — in the country’s largest asset management company.

SBI Chairman Challa Sreenivasulu Setty said the move comes at an opportune time given the company’s consistent growth and dominant position. “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,” he noted.

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He further added that the offering would help “maximize value realization for existing stakeholders, create opportunities for general shareholders, broaden market participation and lead to increased awareness of products to a wider set of potential investors.”

SBI currently holds a 61.9 per cent stake in SBIFML, while AMUNDI Asset Management owns 36.36 per cent, with the remaining 1.6 per cent held by others. The joint venture manages mutual funds and investment portfolios across retail and institutional segments.

SBIFML commands a 15.55 per cent market share, managing Quarterly Average Assets Under Management (QAAUM) of ₹11.99 trillion in the July–September 2025 quarter. Its AUM under Alternates stood at ₹16.32 trillion as of September 30, 2025.

In FY25, SBI earned ₹4,230.92 crore in income from its stake in SBIFML. The forthcoming IPO is expected to unlock significant value while strengthening SBI’s capital position and broadening investor access to India’s fast-growing mutual fund ecosystem.