SBI MF arm set for IPO as SBI, Amundi to offload stakes

New Delhi: State Bank of India (SBI) on Thursday said it has approved divestment of about six per cent stake in its subsidiary SBI Funds Management Ltd (SBIFML) through initial public offering (IPO).

SBIFML, one of the sponsors of SBI Mutual Fund, will be the third subsidiary of SBI to be listed after SBI Cards and SBI Life Insurance. SBI approves offloading of 3,20,60,000 equity shares, being equivalent to 6.3007 per cent of total equity capital of (SBIFML) through IPO, subject to regulatory approvals, the country’s biggest lender SBI said in a regulatory filing. 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 a total of 10.0013 per cent stake comprising 5,08,90,000 shares to be listed, it said. Both the promoters of SBIFML have jointly initiated the IPO, which is likely to be completed in 2026, it said. SBI Mutual Fund was established in the year 1987 with SBI as the sponsor and was the first non-UTI mutual fund in India. In 1992, SBI Funds Management Limited was incorporated as a wholly owned subsidiary of SBI as Investment Manager for SBI Mutual Funds to provide investment solutions across different asset classes, it said.