SBI and Amundi to Jointly Launch IPO for SBIFML, Targeting 2026 Completion

The State Bank of India (SBI) has announced plans to divest 3,20,60,000 equity shares, or 6.3007% of SBI Funds Management Limited (SBIFML), via an Initial Public Offering (IPO), contingent upon regulatory approval. Amundi India Holding, SBIFML's other promoter, will similarly offload 1,88,30,000 equity shares, amounting to 3.7006% of the total equity, with the offering encapsulating 10.0013% of the firm's total equity in the public market.

SBI and Amundi's joint venture, SBIFML, initially formed in 1987, has grown to become India's largest asset management entity, holding a 15.55% market share. The initial public offering, spearheaded by these promoters, is anticipated to reach fruition by 2026. SBI Mutual Fund, predicated upon its 1992 formation as a subsidiary of SBI, has since expanded its mandate into diverse asset classes, becoming a vanguard in mutual fund offerings within the Indian market.

SBIFML Chair Challa Sreenivasulu Setty highlighted this IPO as a definitive step following the successful listings of SBI Cards and SBI Life Insurance. He emphasized the strategic timing of this undertaking, pointing to SBIFML's strong market performance. Amundi's CEO Valerie Baudson noted that the IPO signifies recognition of SBIFML's formidable position within India's financial services landscape, underscoring both organizations' commitment to nurturing a prosperous long-term partnership.