Kolkata: The largest bank in the country SBI will offload its stake in the largest mutual fund house in India through an IPO, SBI has announced. The announcement comes when a virtual IPO frenzy is sweeping the country. The announcement was made on November 6, after a few months of speculation about the move to unlock value by SBI selling its stake in the asset management subsidiaries. Reports said that the IPO framework agreement could be signed on November 10.
Incidentally, SBI Cards and SBI Life Insurance are subsidiaries of the largest bank of India which are already listed. SBI Funds Management will be third subsidiary where SBI will sell its stake. SBI informed the development in a filing to the bourses. Amundi India Holding will sell 1,88,30,000 equity shares in the market while SBI will sell 3,20,60,000 equity shares of its subsidiary.
Biggest AMC in India
While SBI holds 61.91% stake in the company, Amundi India Holding owns 36.36% in SBIFML. The history of SBI Mutual Fund dates back to 1987, when it was set up with SBI as the sponsor. Incidentally, UTI was the first mutual fund house in India and SBI MF became the first non-UTI mutual fund in the country. Five years later, in 1992, SBI Funds Management became a wholly owned subsidiary of SBI.
SBIFML has the crown of the largest asset management company. It has a market share of 15.55% in the flourishing mutual fund sector. As on September 30, 2025 (Q2FY26), its Quarterly Average Assets Under Management stood at Rs 11.99 lakh crore taking into account different schemes of SBI Mutual Funds.
“Considering SBIFML’s sustained strong performance and market leadership over the years, it is considered an opportune time to launch the IPO process. Apart from maximising value realisation for the existing stakeholders, the IPO will create opportunities for the general shareholders, broaden market participation and lead to increased awareness of products to a wider set of potential investors,” SBI chairman C S Shetty said on November 6.
“Over the years, SBIFML has established itself as the leader in India’s asset management industry. It has grown successfully, leveraging on the powerful distribution capacity of SBI’s network in India, combined with Amundi’s global expertise in asset management,” remarked Valérie Baudson, CEO of Amundi.
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