SBI and Amundi to List India's Largest Mutual Fund Venture via IPO

State Bank of India (SBI) and Amundi India Holding, co-promoters of SBI Funds Management Ltd (SBIFML), have announced plans to divest a combined 10% equity stake through an Initial Public Offering (IPO). This move is set to list SBIFML, India's largest mutual fund venture, on the stock exchanges, with the IPO expected to be completed by 2026. SBI will sell 6.30% of its stake, equivalent to 3.20 crore shares, while Amundi India Holding will divest 3.70%, amounting to 1.88 crore shares.

SBIFML currently holds a dominant position in the Indian market, boasting a 15.55% market share. As of September 30, 2025, it managed quarterly average assets under management (QAAUM) of Rs 11.99 lakh crore for various mutual fund schemes and Rs 16.32 lakh crore in alternative assets. SBI Chairman Challa Sreenivasulu Setty stated that the IPO is an opportune time given SBIFML's strong performance and market leadership, aiming to maximize value, broaden shareholder participation, and enhance public awareness. Amundi CEO Valérie Baudson highlighted the successful partnership leveraging SBI's distribution network and Amundi's global expertise, noting the IPO will unlock joint value in the fast-growing Indian market. This will be the third SBI subsidiary to go public, following SBI Cards and SBI Life Insurance.

Impact: This IPO will bring a significant player in the asset management industry to the public market. The listing of SBIFML is expected to enhance its visibility and access to capital, potentially leading to faster growth and increased competition within the Indian mutual fund sector. For investors, it presents an opportunity to invest in a market leader, which could boost overall investor confidence in the Indian financial services space. Rating: 8/10

Heading: Definitions Quarterly Average Assets Under Management (QAAUM): This is the average of a company's total assets under management over a specific quarter, used to measure performance and stability. Initial Public Offering (IPO): The first time a private company offers its shares to the public through a stock exchange. Asset Management Company (AMC): A company that invests pooled funds from many investors on their behalf. AUM (Assets Under Management): The total market value of all financial assets that a financial institution manages on behalf of its clients.