SBI to List Asset Management Arm in Strategic IPO Move

State Bank of India (SBI) announced plans to divest approximately 6% of its shareholding in its subsidiary, SBI Funds Management Ltd (SBIFML), via an Initial Public Offering (IPO). This decision marks the third occasion the bank has taken one of its subsidiaries public, following the IPOs of SBI Cards and SBI Life Insurance.

The IPO will involve offloading 3,20,60,000 equity shares from SBIFML, equating to 6.3007% of its total equity capital. Meanwhile, Amundi India Holding, the co-promoter, will divest 1,88,30,000 equity shares, allowing a cumulative listing of 10.0013% of SBIFML's equity stake. The share offering is anticipated to conclude in 2026, subject to regulatory authorizations.

Challa Sreenivasulu Setty, SBI's Chairman, expressed that the timing is opportune to optimize value realization and enhance market presence. Valérie Baudson, CEO of Amundi, highlighted the IPO as a pivotal opportunity to unlock the value of their joint venture, while further expanding SBIFML's influence in the fast-evolving Indian market.