SBI MF IPO: SBI to sell 6.3% stake, AMUNDI 3.7%; listing expected in 2026

SBIMF IPO news: SBI MF is a joing venture between SBI and AMUNDI Asset Management. State Bank of India owns a majority stake of approximately 61.9 per cent in SBI Mutual Fund

SBIMF IPO news: State Bank of India (SBI), the largest stakeholder in SBI Funds Management (SBIMF), will divest 6.3 per cent stake in the mutual funds-arm via an initial public offer (IPO), the lender said on Thursday.

 

"The Executive Committee of the Central Board (ECCB) of State Bank of India has accorded approval to divest 3,20,60,000 equity shares, being equivalent to 6.3007 per cent of total equity capital of SBI Funds Management Limited through Initial Public Offering, subject to all regulatory approvals," SBI said in a stock exchange filing today. 

AMUNDI India Holding, the other promoter of SBIFML, will divest 1,88,30,000 equity shares, being equivalent to 3.7006 per cent of total equity capital of SBIFML. With this, a total of 10.0013 per cent stake, comprising of 5,08,90,000 shares (50.8 million shares) of SBIMF will be listed.  "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," SBI Chairman Challa Sreenivasulu Setty said.

 

SBI MF is a joing venture between SBI and AMUNDI Asset Management. State Bank of India owns a majority stake of approximately 61.9 per cent in SBI Mutual Fund, while AMUNDI Asset owns 36.36 per cent stake.

 

The remaining around 1.6 per cent stake is held by 'Others' in SBIMF.  Meanwhile, this is not the first time that SBI MF is planning to launch its IPO. Back in 2021, SBI Funds Management (SBI Mutual Fund) has drawn plans to launch its IPO by Q1FY23. At that time, SBI MF was looking at an IPO size of around ₹7,000-₹7,500 crore, valuing itself at ₹70,000-₹75,000 crore. 

About SBI MF IPO News

SBIMF is the largest asset management company in the country with market share of 15.55 per cent, managing quarterly average assets under management (QAAUM) for Q2FY26 of ₹11.99 trillion under various schemes of SBI Mutual Funds. It had an AUM of ₹16.32 trillion under Alternates as on September 30, 2025. 

SBI Chairman CS Setty had first spoken about the SBIMF IPO at the Business Standard BFSI Insight Summit 2025.

 

Held in Mumbai, Setty revealed plans to launch the IPO of two subsidiaries – SBI MF and SBI General Insurance.

 

“These two subsidiaries are valuable and will definitely be listed... The timing, however, is something I cannot predict at this stage,” he had said. 

As per etty, 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, apart from maximising value realisation for the existing stakeholders.  "This will further enhance the public visibility of the company, thereby reinforcing its position as a leading player in the asset management industry," CS Setty said in a statement. 

SBI Funds Management, Valérie Baudson, chief executive officer of AMUNDI said, has established itself as the leader in India's asset management industry. "This IPO will allow to unlock the value jointly created by SBI and AMUNDI, which will continue their successful long-term partnership in a fast-growing Indian market that presents significant development potential," he said.

SBIMF IPO date

According to SBI's statement, both the promoters of SBIFML have jointly initiated the IPO, which will likely be completed in 2026.  SBI said that the SBI MF IPO Framework Agreement is expected to be completed by November 10, 2025.

 

Reports further suggest that SBI is looking to bring the IPO, valuing SBI MF at ₹1 trillion. If the IPO goes through at this valuation, it would be the largest-ever asset management company (AMC) listing in India.

 

SBI plans to space out the mutual fund IPO to avoid excess liquidity in the market after its recent 25,000 crore institutional placement.

 

Analysts bullish on SBI

Dalal Street analysts have raised their target prices and earnings estimates for State Bank of India (SBI) after the public sector bank raised its credit growth guidance for the current financial year and reported a better-than-expected September quarter (Q2FY26) results.

 

Those at Emkay Global Financial Services, for instance, has increased its share price target on SBI stock by 13 per cent to ₹1,100, revising their earnings estimates by 3-5 per cent.

 

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On November 4, State Bank of India reported a 10 per cent year-on-year (Y-o-Y) surge in net profit to ₹20,159.7 crore, for the three-months ending September 30, 2025, led by stake sale gains from YES Bank.

 

On the operational front, SBI reported a net interest income (NII) of ₹42,984 crore, up 3.3 per cent over the previous year NII. The lender’s net interest margin (NIM) expanded 7 basis points quarter-on-quarter (Q-o-Q) to 3.09 per cent in Q2, as against expectations of a margin contraction, on the back of a decline in deposit cost partly driven by an increase in daily average CASA (current account-savings account) deposits.

 

Also, the management anticipates a U-shaped NIM recovery, aided by cash reserve ratio (CRR0 benefits and continued CASA focus. 

 

Credit growth guidance raised

State Bank of India said its loan book increased by 3.9 per cent Q-o-Q and 13.1 per cent Y-o-Y, driven by a growth in corporate book (4.2 per cent Q-o-Q), retail (3.5 per cent Q-o-Q), agri (5.7 per cent Q-o-Q), and SME (2.7 per cent Q-o-Q).

 

While the Bank guided that the system loan growth could be 11-12 per cent for FY26,  it raised its own credit growth guidance to 12-14 per cent led by improving growth impulse in retail and corporate credit.  

 

Segment-wise, it projects 10-11 per cent corporate credit growth and 19-20 per cent MSME growth, while margins are seen above 3 per cent in H2FY26.

 

PL Capital factor-in a 13 per cent loan growth for SBI in FY26, but believe that a healthy liquidity coverage ratio (LCR) of 143.8 per cent suggests further growth levers. It increased target price to ₹1,100 from ₹960 and retained its ‘Buy’ rating.

  On the bourses, SBI shares hit a record high of ₹971.15 per share on the BSE on Thursday. The stock, however, pared gains to trade flat at ₹957.2 at 1:14 PM as against 0.08 per cent rise in the benchmark BSE Sensex index.