SBI Funds Management IPO: India’s Largest Mutual Fund House Set for Market Debut as SBI and Amundi Trim Stakes

Mumbai | November 6 – In a major development for India’s asset management industry, the State Bank of India (SBI) has cleared the proposal to divest a 6.3% stake in SBI Funds Management Ltd (SBIFML) through an Initial Public Offering (IPO). The move will mark one of the most high-profile listings in the financial services space, given SBIFML’s leadership position in the Indian mutual fund market.

In a regulatory filing on Thursday, SBI announced that its Executive Committee of the Central Board has approved the sale of 3,20,60,000 equity shares, representing a 6.30% stake in SBIFML, subject to necessary regulatory approvals.

Its joint venture partner, Amundi India Holding, will also participate in the IPO by selling 1,88,30,000 shares, equivalent to 3.70% of the company’s equity capital. Post-offer, both promoters are expected to reduce their shareholding proportionately.

About SBI Funds Management (SBI Mutual Fund)

SBIFML, best known by the brand SBI Mutual Fund, is currently India’s largest Asset Management Company (AMC). The fund house commands a market share of 15.55%, backed by a wide product range across:

• Equity mutual funds
• Debt and hybrid schemes
• Exchange Traded Funds (ETFs)
• Portfolio management for institutions and high-net-worth clients
• Alternative investment products

As of September 30, 2025, SBI Mutual Fund manages:

The AMC is jointly promoted by:

• SBI with a 61.91% stake
• Amundi India Holding with a 36.36% stake

What Makes This IPO Significant?

• First major AMC listing since HDFC AMC and Nippon AMC debuted
• High brand trust due to SBI’s nationwide reach
• Growing retail participation in mutual funds amid rising financialisation of savings
• Strong profitability and consistent inflows through SIPs and institutional mandates

Market experts view the IPO as a potential benchmark listing for India’s asset management sector, reflecting the structural growth of the domestic investment ecosystem.

SBI Share Price Reaction

Despite the announcement, shares of State Bank of India remained largely stable, slipping 0.15% to ₹959.05 on the National Stock Exchange as of 2:00 PM. Analysts expect long-term value unlocking once IPO pricing details and valuation estimates are made public.

Outlook

With the mutual fund industry projected to double AUM in the next 4–5 years, the SBI Funds Management IPO could draw strong interest from both institutional and retail investors. Given its scale, distribution network, consistent fund performance, and strong brand recall, the listing is being closely watched as one of the most anticipated IPOs of 2026.