Sbi Mutual Fund IPO : SBI & Amundi to Divest 10% Stake

SBI Funds Management Limited, India’s leading asset management company (AMC), is preparing for a public listing in 2026. The proposed initial public offering (IPO) will involve the sale of around 10 % of the company’s equity by its two major shareholders, State Bank of India (SBI) and French partner Amundi Asset Management. This move will firmly establish SBI Mutual Fund as the third listed subsidiary of the SBI family, following SBI Cards and SBI Life Insurance. This marks a significant milestone for India’s asset management industry. 

Structure of the IPO

SBI is expected to divest approximately 6.3 % of its stake in SBI Funds Management, while Amundi plans to sell about 3.7%. Together, this will account for roughly 10 % of the company’s equity capital. Both promoters have reportedly received board approvals and are in the process of obtaining regulatory clearances and appointing merchant bankers. The listing is expected to take place in 2026 once all approvals are in place.

Rationale and Market Context

The IPO comes at a time when SBI Funds Management continues to strengthen its leadership position in the Indian asset management industry. According to the company’s 2024–25 scheme annual report, as of March 31, 2025, the assets under management (AUM) crossed ₹10.67 lakh crore. This solidifies its position as the largest AMC in India by AUM. The company has also reported steady growth in its investor base, particularly among retail investors, reflecting its expanding market reach and investor trust.

The stake sale is expected to help SBI and Amundi unlock value from their holdings while allowing the market to participate in the company’s long-term growth. It also signals growing investor interest in India’s asset management space, which has seen rising participation from both institutional and retail investors.

Financial Highlights

SBI Funds Management has continued to demonstrate steady operational and financial performance. While detailed audited financial statements for FY 2024–25 have not yet been released, the company’s FY 2023–24 annual report recorded a profit after tax of approximately ₹1,331 crore. Investors should note that the financial results for FY 2024–25 are pending final audit verification and will be formally disclosed in regulatory filings ahead of the IPO.

Risks and Considerations

Potential investors should be aware that the final IPO valuation, issue size, and price band are yet to be determined. The AMC operates in a competitive and highly regulated market, and changes in SEBI norms or market conditions could affect profitability and AUM growth. Investors should review official disclosures and offer documents before making investment decisions once the IPO details are announced.

Conclusion

The planned IPO of SBI Funds Management marks an important step for India’s financial markets, as SBI and Amundi prepare to sell a combined 10 % of their shareholding. With assets under management of over ₹10 lakh crore and strong backing from SBI and Amundi, the listing reflects the growing depth of India’s mutual fund industry. It will also give investors a chance to be part of a trusted and well-managed institution, reinforcing the SBI Group’s position as a leader in the country’s financial sector.