State Bank of India Subsidiary SBI Funds Management Limited Files DRHP for IPO; SBI to Divest 6.3% Stake via OFS

SBI and Amundi to Offload Stakes Through OFS

The IPO will see existing shareholders dilute their holdings. State Bank of India plans to sell up to 12,83,34,397 shares, amounting to a 6.3007% stake in SBIFML. Amundi India Holding will offload up to 7,53,74,842 shares, representing 3.7% stake.

The number of shares offered by SBI has been significantly revised upward from an earlier estimate of 3,20,60,000 shares to 12,83,34,397 shares. This revision was made to maintain the 6.3007% stake dilution target after the company’s equity base increased due to bonus share issuance and ESOP exercises.

India’s Largest AMC with ₹12.63 Lakh Crore AUM

SBI Funds Management is India’s largest asset management company, with assets under management (AUM) of approximately ₹12.63 lakh crore as of December 31, 2025. The company operates as a joint venture between SBI, which holds around 61.98% stake, and Amundi, Europe’s largest asset manager, holding about 36.40%.

SBI Mutual Fund, sponsored by SBI and established in 1987, was the first non-UTI mutual fund in India, and the business has since grown into a market leader in the domestic mutual fund industry.

Financial Performance Supports IPO Plans

SBIFML has demonstrated strong financial performance in recent years. For FY 2024-25, the company reported total income of ₹4,230.92 crore, contributing 0.64% to the total income of the SBI Group. Its reserves and surplus stood at ₹5,108.56 crore, accounting for 1.19% of the Group’s total reserves.

Profit for FY 2024-25 rose to ₹2,540.2 crore, marking a 22.5% increase, while revenue increased 33.7% to ₹3,597.8 crore. For the nine months ended December 2025, profit surged 25.9% to ₹2,432.9 crore, and revenue grew 23% to ₹3,250.6 crore, reflecting strong growth momentum.

SBI Share Price Gains on IPO Announcement

Shares of State Bank of India reacted positively to the development, rising as much as 3.44% to ₹1,085 on the NSE in early trade on March 20, 2026. The IPO announcement is seen as a value-unlocking move for SBI, as it monetises part of its stake in a high-growth and profitable subsidiary.

IPO Structure, Timeline and Market Positioning

The IPO will be conducted through a book-building process, with the price band to be determined later. Earlier, SBI Chairman C.S. Setty had indicated a timeline of filing the DRHP by March and targeting listing by September 2026, with a 12-month window approved by the boards of SBI, Amundi, and SBIFML.

Post listing, SBIFML will join other listed asset management companies such as ICICI Prudential AMC, HDFC AMC, UTI AMC, Aditya Birla Sun Life AMC, Shriram AMC, and Nippon Life India Asset Management.

Merchant Bankers and Strategic Developments

A consortium of leading investment banks has been appointed to manage the issue, including Kotak Mahindra Capital, Axis Capital, BofA Securities India, HSBC Securities and Capital Markets India, ICICI Securities, Jefferies India, JM Financial, Motilal Oswal Investment Advisors, and SBI Capital Markets.

Separately, in February 2026, the RBI approved SBI Mutual Fund’s proposal to acquire up to 9.99% stake in Bandhan Bank, subject to regulatory compliance, further strengthening its strategic positioning in the financial sector.

Conclusion

The filing of the DRHP by SBI Funds Management marks a significant step in bringing India’s largest asset management company to the public markets. With a ₹12.63 lakh crore AUM, strong financial growth, and backing from SBI and Amundi, the IPO is expected to attract strong investor interest. The move also enables SBI to unlock value through a 6.3% stake sale while retaining majority control, positioning SBIFML among the top listed AMCs in India.