SBI To Divest 6.3% Stake In SBI Funds Management via IPO; Total 10% Equity To Be Offered

Mumbai, November 6, 2025 – The country’s largest bank, SBI, has agreed to invest 3.20 cr equity shares, representing a 6.3007% stake, in SBI Funds Management Limited via an initial public offering. This move makes SBI the third largest public maker, after SBI Cards and SBI Life Insurance.

Key Details Of The Divestment

SBI and Amundi India Holding are planning to invest 5.09 cr in equity through an IPO, with shareholdings of 6.3007% and 3.7006%, respectively. After completing the pending approval, the joint IPO will be excluded in 2026 as expected.

As of 6 November 2025, the share price of SBI was closed at ₹959.85, up 2.25 or 0.23% from its previous close of ₹957.60. The share opened at ₹969.65 and made its intraday high of ₹971.40.

Background And Market Position

SBI Mutual Fund is India’s first non-UTI mutual Fund. Founded in 1987, it was incorporated as the manager for the SBI mutual fund. At present, SBI and Amundi India Holding hold 61.91% and 36.36% stakes in SBIMFL, respectively. At present, SBIMFL manages a Quarterly Average AUM of ₹11.99 trillion and an AUM of ₹16.32 trillion under various investment schemes. This is the largest 15.5% market share, higher than in the asset management industry.

Management Commentary

SBI Chairman Challa Sreenivasulu Setty stated that this IPO is a strategic opportunity to unlock value and increase public participation. Considering SBIMFL’s market position and leadership, this is the right time for the IPO launch. Apart from maximising shareholders’ shareholding, this will broaden market participation and increase awareness of the company. Also, Amundi CEO Valérie Baudson noted that this IPO will unlock the value of the joint venture created by both parties. They ensure this partnership will last in the rapidly growing market of India.

REF: https://nsearchives.nseindia.com/corporate/SBIN_06112025131430_BSE_NSE_PR_061125.pdf

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