SBI, French partner Amundi to divest 10% in SBI Funds via IPO

SBI and Amundi to Offload 10% Stake in SBI Funds Management via IPO.

Expert Analysis:

• Stake Sale Details: State Bank of India will divest 6.3% and Amundi India Holding will sell 3.7% of their respective holdings, totaling a 10% stake sale in SBI Funds Management Limited (SBIFML) through an IPO.

• Ownership Structure: Currently, SBI holds 61.91% and Amundi India Holding owns a 36.36% stake in the fund house. The sale will involve a total of 5.08 crore shares of SBI Mutual Fund.

• IPO Timeline: The IPO Framework Agreement is scheduled for execution on November 10 and is expected to be completed in 2026, according to SBI’s release.

• Company Scale and Market Share: SBI Funds Management, India’s largest mutual fund, commands a 15.55% market share with a quarterly average AUM of ₹11.99 lakh crore and AUM of ₹16.32 lakh crore under Alternates as on September 30.

• Valuation Insights: In the unlisted market, the stock traded at ₹2,650 on Thursday, suggesting robust investor interest ahead of the public listing.

• Listing Significance: SBIFML will become the third SBI subsidiary to list after SBI Cards and SBI Life Insurance, and the seventh AMC to list on domestic bourses.