State Bank of India (SBI) on Thursday announced to divest 3,20,60,000 equity shares or 6.3007 per cent of the total equity capital of SBI Funds Management Limited (SBIFML) through initial public offering (IPO).
Additionally, Amundi India Holding, the other promoter of SBIFML, will divest 1,88,30,000 equity shares, being equivalent to 3.7006 per cent of the total equity capital of SBIFML, with a total of 10.0013 per cent stake comprising 5,08,90,000 shares to be listed, according to its stock exchange filing.
“SBI Funds Management Limited (SBIFML) will be the third subsidiary of SBI to be listed after SBI Cards and SBI Life Insurance. Considering SBIFML’s sustained strong performance and market leadership over the years, it is considered an opportune time to launch the IPO process,” said SBI Chairman Challa Sreenivasulu Setty.
Apart from maximising value realisation for existing stakeholders, the IPO will create opportunities for general shareholders, broaden market participation, and lead to increased awareness of the products among a wider set of potential investors, he added.
Both the promoters of SBIFML have jointly initiated the IPO, which is expected to be completed in 2026, India’s largest public sector lender stated in the filing.
Valerie Baudson, Chief Executive Officer of Amundi, stated, “Over the years, SBI Funds Management Limited 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.”
Earlier, SBI reported a 6.4 per cent year-on-year (YoY) increase in its consolidated net profit to Rs 21,504.49 crore for the second quarter (Q2) of FY26, as compared to Rs 20,219.62 crore in the same period last financial year (Q2 FY25).
The difference between interest earned and interest paid, or the bank’s net interest income (NII), increased 3.28 per cent year over year to Rs 42,984 crore from Rs 41,620 crore in the same quarter of the previous year.
According to its earlier regulatory filing, its domestic net interest margin (NIM) fell to 3.09 per cent, 18 basis points lower than it was a year ago at 3.27 per cent.
