SBI board approves IPO of SBI Funds Management; PSU lender to sell 6.3% stake

The State Bank of India (SBI), which holds the largest share in SBI Funds Management, announced on Thursday that it will sell a 6.3% stake in its mutual funds division through an initial public offering (IPO).

The lender's Executive Committee of the Central Board (ECCB) granted approval for the move during their meeting on November 6, 2025.

The IPO Framework Agreement for this transaction is anticipated to be signed on November 10, with the entire process projected to be finalized sometime in 2026, according to SBI's disclosure.

Regarding SBI's overall financial performance, SBI Funds Management reported a total income of ₹4,230.92 crore in FY2024-25, representing approximately 0.64% of the total income of the SBI Group. The AMC's Reserve & Surplus totals ₹5,108.56 crore, constituting 1.19% of the group’s overall reserves.

"The ECCB of State Bank of India has accorded approval to divest 3,20,60,000 equity shares, being equivalent to 6.3007% of total equity capital of SBI Funds Management Limited through Initial Public Offering, subject to all regulatory approvals," said SBI in a stock exchange filing today.

SBI stated that the ultimate sum it will gain from this stake sale will be established in discussion with stakeholders at a future date. The divestment will exclusively occur through the IPO process and will not include any related party transactions or slump sale deals.

It also emphasized that the sale falls outside the parameters of a scheme of arrangement and that no promoter group is participating in the purchasing process.

SBI Funds Management, a joint venture formed by SBI and Amundi Asset Management, stands out as one of the foremost asset management firms in India. Amundi India Holding, which is another promoter of SBI Funds Management, plans to sell 1,88,30,000 equity shares, representing 3.7006% of SBI Funds Management's total equity capital, while a total stake of 10.0013% consisting of 5,08,90,000 shares is set to be listed.

SBI Chairman, Shri Challa Sreenivasulu Setty said, that SBI Funds Management will be the third subsidiary of SBI to be listed after SBI Cards and SBI Life Insurance. Considering SBI Funds Management’s sustained strong performance and market leadership over the years, it is considered an opportune time to launch the IPO process.

"Apart from maximizing value realization for the existing stakeholders, the IPO will create opportunities for the general shareholders, broaden market participation and lead to increased awareness of products to a wider set of potential investors. This will further enhance the public visibility of the Company, thereby reinforcing its position as a leading player in the asset management industry,” said Sreenivasulu.

In FY2024-25, SBI Funds Management generated a total income of ₹4,230.92 crore, representing approximately 0.64% of SBI Group’s overall income. The AMC's Reserve & Surplus amounts to ₹5,108.56 crore, making up 1.19% of the total reserves of the group.

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