State Bank of India (SBI), has announced its intention to launch an initial public offering (IPO) for its asset-management arm, SBI Funds Management. Through the offering, SBI plans to offload approximately 6.3 per cent of its stake in the firm.
The asset-management company is a joint venture between SBI, which will hold about 61.9 per cent and French fund manager Amundi about 36.4 per cent. Under the deal, Amundi is expected to divest around 3.7 per cent of its stake, making the IPO’s total size close to 10 per cent of the company’s equity.
This strategic move signals SBI’s aim to unlock value from its subsidiary and invite greater public participation in its fast-growing mutual-fund business. The company has already reported strong financials, with the first half of the current fiscal year showing a profit of Rs 15,860 million, up about 15 per cent year-on-year.
SBI has not yet disclosed the final valuation, issue size or listing timeline. Regulatory approvals and a fresh valuation are still pending, with the listing expected to follow in 2026.
For investors, this IPO offers an opportunity to invest in one of India’s dominant mutual-fund houses as the asset-management sector expands rapidly.