SBI and Amundi to Reduce Stake in SBI Funds IPO

SBI Funds Management Ltd Seeks IPO with Joint Venture Partners

SBI Funds Management Ltd, India's largest asset manager, has filed draft papers for an initial public offering (IPO) with the Registrar of Companies on March 16, 2023. The joint venture partners, State Bank of India (SBI) and Amundi SA, are cumulatively offering 203.7 million shares for sale, translating to a 10% stake in SBI Funds.

Key Highlights

• No fresh shares will be issued, so no proceeds of the IPO will go to the company.
• SBI will offer up to 128.3 million shares, while Amundi SA will sell up to 75.3 million shares through its India affiliate.
• The two shareholders currently hold 98.02% stake in the company, with SBI owning 61.76% and Amundi, 36.26%.
• Joint Chief Executive Officer D.P. Singh holds a 0.1% stake.

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Financial Performance

• As of 31 December 2025, SBI Funds managed average assets worth ₹12.5 trillion, with a mutual fund market share of 15.4%.
• The company reported a net profit of ₹2,531 crore in FY25, as against ₹2,062 crore in the previous financial year.

Market Context

• India's public sector behemoth SBI has been considering public listings for its subsidiaries, including SBI General Insurance and SBI Mutual Fund.
• The IPO comes at a time of a slowdown in India's capital market, with returns from 2026 IPOs averaging a 0.3% premium across 45 issues.
• SBI Funds' rival fund manager ICICI Prudential Asset Management's $1.2 billion IPO hit the streets in December 2025, and the company is now valued at around $15 billion.

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