SBI Funds Management IPO: A New Opportunity for Indian Investors
State Bank of India (SBI) is set to take its asset management arm public. The executive committee of the lender’s board has approved a partial divestment of its stake in SBI Funds Management Limited (SBIFML) through an Initial Public Offering (IPO), according to an exchange filing on Thursday.
Details of the IPO
In a meeting on November 6, the Executive Committee of the Central Board (ECCB) greenlit the plan to sell 3.2 crore equity shares. This offering will be equivalent to 6.3007% of the total equity capital of SBI Funds Management. The bank’s joint venture partner, Amundi India Holding, will also participate in the offer, selling 1.88 crore shares, or a 3.7006% stake.
About SBI Funds Management
SBI Funds Management, which is a joint venture where SBI currently holds a 61.91% stake and Amundi holds 36.36%, is the bank’s mutual fund arm and is currently India’s largest asset manager with a dominant 15.55% market share. As of September 30, 2025, the firm managed as much as Rs 12 lakh crores in Quarterly Average Assets Under Management (AUM) and Rs 16.32 lakh crore in Alternates AUM. For the 2024-25 financial year, its total income stood at Rs 4,230.92 crore.
Impact on Indian Investors
The offering is expected to be completed in 2026 and will mark the third major subsidiary SBI has taken public, following SBI Life Insurance and SBI Cards. SBI Funds contributed to around 8% of the lender’s Sum-of-the-parts (SOTP) valuation, with analysts pegging the firm’s valuation at around Rs 1.2 lakh crore. This move is likely to have a positive impact on Indian investors, as it will provide them with an opportunity to invest in a leading asset management company.
Indian investors can learn more about Five Major IPOs Of 2025: A Comprehensive Guide for Indian Investors