Mumbai — State Bank of India (SBI) announced on Thursday that it will sell a 6.3% stake in its mutual funds arm, SBI Funds Management, through an initial public offering (IPO). The decision was approved by SBI’s Executive Committee of the Central Board (ECCB) during their meeting on November 6, 2025.
“The ECCB of State Bank of India has accorded approval to divest 3,20,60,000 equity shares, equivalent to 6.3007% of total equity capital of SBI Funds Management Limited through IPO, subject to all regulatory approvals,” SBI said in a filing with the stock exchange.
The IPO framework agreement is expected to be signed on November 10, 2025, with the complete process projected to conclude sometime in 2026. The divestment will occur exclusively via IPO, without involving related-party transactions or slump sales. No promoter group will participate in the purchase process.
SBI Funds Management Overview
SBI Funds Management, a joint venture between SBI and Amundi Asset Management, is among India’s leading asset management firms. Amundi India Holding will also divest 1,88,30,000 shares (3.7006%), bringing the total stake to be listed to 10.0013% (5,08,90,000 shares).
In FY2024-25, SBI Funds Management reported a total income of ₹4,230.92 crore, representing 0.64% of SBI Group’s total income, while its Reserve & Surplus stood at ₹5,108.56 crore, or 1.19% of the group’s overall reserves.
Strategic Rationale
SBI Chairman Shri Challa Sreenivasulu Setty noted that the IPO will make SBI Funds Management the third SBI subsidiary to be publicly listed, following SBI Cards and SBI Life Insurance.
“Considering SBI Funds Management’s sustained strong performance and market leadership, it is an opportune time to launch the IPO process,” Setty said.
“Apart from maximizing value for existing stakeholders, the IPO will broaden market participation, enhance public visibility, and reinforce its position as a leading player in India’s asset management industry.”
The IPO is expected to increase awareness of SBI Funds Management’s products among a wider set of potential investors and strengthen its visibility in the capital markets.