SBI Funds Management IPO: Listing likely in 2026; Parent to divest 6.3% stake

India's largest lender, State Bank of India

(SBI), has approved the divestment of 3.20 crore equity shares, representing 6.3% of the total equity capital of its mutual fund arm, SBI Funds Management Ltd (SBIFML), through an initial public offering (IPO).

Amundi India Holding, the other promoter of SBIFML, will also sell 1.88 crore shares, equivalent to 3.7% of the total equity capital.

Together, both promoters will offload 10% stake, or 5.09 crore shares, in the proposed listing.

SBI said in an exchange filing that both promoters have jointly initiated the IPO process, which is expected to be completed in 2026.

Currently, SBI holds 61.91%, while Amundi India Holding owns 36.36% stake in SBIFML.

SBIFML is India's largest asset management company, with a 15.55% market share, managing ₹11.99 lakh crore in quarterly average assets under management (QAAUM) for Q2 FY26, and ₹16.32 lakh crore in alternate assets as of September 30, 2025.

"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, it is an opportune time to launch the IPO process," said SBI Chairman Challa Sreenivasulu Setty.

Setty added that the public offer aims to maximise value for existing stakeholders, broaden market participation, and enhance visibility of SBI Mutual Fund products among a wider investor base, further strengthening its position in the asset management industry.

Shares of SBI are currently trading 0.46% higher at ₹962. The stock has risen over 21% so far in 2025.