News

State Bank of India (SBI) on Thursday announced plans to sell a 6.3 per cent stake in its asset management arm, SBI Funds Management Limited (SBIFML), through an Initial Public Offering (IPO).

The move marks another major step by the lender to unlock value from its subsidiaries while strengthening its capital position.

According to an exchange filing, SBI will divest 3,20,60,000 equity shares, representing 6.3007 per cent of the total equity capital of SBIFML. The sale will be conducted through the IPO route and remains subject to necessary regulatory approvals.

“The Executive Committee of the Central Board (ECCB) of State Bank of India, in its meeting held on November 6, 2025, has accorded approval to divest 3,20,60,000 equity shares, being equivalent to 6.3007 per cent of total equity capital of SBI Funds Management Limited through Initial Public Offering, subject to all regulatory approvals,” SBI said in its filing.

The IPO Framework Agreement for the transaction is expected to be signed on November 10, 2025, with the process likely to be completed sometime in 2026, according to the disclosure.

SBIFML is one of India’s largest asset management companies and operates as a joint venture between SBI and Amundi Asset Management. The planned divestment will not involve any related party transactions or slump sale arrangements, the bank clarified.

It also stated that the proposed sale falls outside the scope of a scheme of arrangement and does not include any promoter group participation.

As per SBI’s FY2024-25 financials, SBIFML contributed a total income of Rs 4,230.92 crore, which accounts for about 0.64 per cent of the SBI Group’s total income. The company’s reserves and surplus stood at Rs 5,108.56 crore, representing 1.19 per cent of the group’s total reserves.

SBI said the final proceeds it will receive from the stake sale will be determined in consultation with stakeholders at a later stage, depending on market conditions and the IPO’s final valuation.

Meanwhile, SBI’s shares gained in Thursday’s trading session, with the stock touching a 52-week high of Rs 971.15 on the BSE, reflecting positive investor sentiment following the announcement.

Anubhav Maurya is a Senior Sub-Editor at Zee Business, focusing on the stock market, personal finance, corporate news, and related sectors.

He has previously worked wi