State Bank of India (SBI) has approved a proposal to divest a 6.3 per cent stake in its mutual fund subsidiary, SBI Funds Management Ltd (SBIFML), through an initial public offering (IPO).
According to an exchange filing, the country’s largest lender will sell 32.06 million shares in the Asset Management Company.
The IPO framework agreement is expected to be signed on November 10, with the share sale likely to conclude in 2026, Bloomberg reported.
SBI Funds Management — a venture between State Bank of India and Amundi Asset Management — is seen as a bellwether for India’s expanding mutual fund industry.
SBI holds 61.91 per cent in the company, while Amundi India Holding owns 36.36 per cent.
SBI Mutual Fund, established in 1987 as India’s first non-UTI mutual fund, has since grown into the country’s largest asset management company, commanding a 15.55 per cent market share.
As of September 30, 2025, it managed Rs 11.99 lakh crore in quarterly average assets under management (QAAUM) and Rs 16.32 lakh crore under alternates.
The Indian mutual fund industry has seen explosive growth, with total assets under management (AUM) surging to Rs 75.61 lakh crore as of September 2025, clocking at a 12.7 per cent year-on-year increase and nearly triple the figure from September 2020.
Once listed, SBI Funds Management will join the ranks of four other publicly traded AMCs in India — HDFC AMC, UTI AMC, Nippon Life India AMC, and Aditya Birla Sun Life AMC — whose IPOs between 2017 and 2020 collectively marked key milestones for the sector.
Financially, SBIFML has delivered consistently strong results. The company reported total income of Rs 3,273 crore in FY24, with a profit after tax of Rs 2,073 crore, reflecting a robust margin of 63.04 per cent.
It also became the first Indian fund house to cross Rs 10 lakh crore in assets under management during FY25.
During FY25, SBI Mutual Fund added more than 62 lakh new investors, tripling its retail reach over five years.
Its Systematic Investment Plan (SIP) trigger book also expanded threefold between FY2019 and FY2024, underscoring its strong retail franchise and investor confidence.
With the proposed IPO, SBI looks set to not only monetise part of its holding but also give investors a share of India’s fast-growing asset management story.