SBI Plans to Sell 6.3% Stake in SBI Funds Management Through IPO: Full Details

State Bank of India has confirmed it will sell a 6.3% stake in SBI Funds Management Limited (SBIFML) through an upcoming IPO. The sale will include around 3.20 crore equity shares, part of a joint divestment effort with Amundi India Holding, which will offload an additional 1.88 crore shares, bringing the total public offering to over 10% of SBIFML’s equity capital.

The IPO will make SBI Funds Management the third SBI subsidiary to be listed, following SBI Cards and SBI Life Insurance. According to SBI Chairman Challa Sreenivasulu Setty, the decision was made because of the company’s strong growth and leadership in India’s asset management sector. He said this is the right time to bring the IPO to market, benefiting existing shareholders and allowing new investors to participate in the brand’s success.

SBI said the listing would help increase transparency, market participation, and public awareness about the company’s financial products. The process has already been initiated jointly by both promoters, and the IPO is expected to be completed sometime in 2026.

Amundi CEO Valerie Baudson praised the joint venture’s consistent success, stating that SBI Funds Management has become a leading name in India’s mutual fund industry, driven by SBI’s wide network and Amundi’s international experience in asset management.

This announcement comes just after SBI reported its Q2 FY26 results, showing a 6.4% year-on-year rise in consolidated net profit to Rs 21,504.49 crore, up from Rs 20,219.62 crore last year. The bank’s net interest income also increased 3.28% to Rs 42,984 crore, though the domestic net interest margin saw a slight dip to 3.09%.

Once listed, SBI Funds Management is expected to attract strong interest from institutional and retail investors alike, given its dominant market position and trusted parentage under the State Bank of India.