State Bank of India, the country’s largest lender by assets, said on Thursday it will sell a 6.3% stake in SBI Funds Management through an initial public offering, its second attempt after an earlier announcement in 2021.
SBI Funds Management, a joint venture between SBI and French fund manager Amundi, manages assets worth 120 billion rupees ($1.37 billion), serving retail and institutional investors through mutual funds and investment portfolios.
The French company will sell a 3.7% stake via the IPO, which will likely be completed in 2026, according to the Indian lender.
SBI currently owns a 61.9% stake in SBI Funds Management, while Amundi holds 36.4%.
The asset manager reported a net profit of 15.86 billion rupees for the first half of this fiscal year, up 15% from a year earlier.
“We will now start the process of appointing investment bankers and doing a fresh valuation of the company,” said a senior banker at SBI, who did not want to be named as the matter is confidential.
This is SBI‘s second attempt at listing the asset manager. It last listed another unit, SBI Cards and Payment Services SBIC.NS, in 2020.
The divestment plan comes at a time of intense activity in India‘s IPO market.
The country is expected to see a record year for IPOs in 2025, surpassing the previous year’s $20.5 billion proceeds, with offerings from firms including Tata Capital TATC.NS, LG Electronics India LGEL.NS and HDB Financial HDBF.NS making India the third biggest venue for primary market fundraising.
Over 240 large- and mid-sized firms have already raised $10.5 billion in the first nine months of 2025, according to LSEG data.
Reuters
