- SBI plans to take its asset management arm public through an IPO offering
- The Executive Committee approved selling 3.2 crore shares in SBI Funds Management
- The shares offered represent 6.3007% of the total equity capital in SBIFML
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.
In a meeting on Nov. 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.
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 Sept. 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.
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.
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