The State Bank of India (SBI) has sold a 1.42 per cent stake in SBI Funds Management Ltd (SBIFML) for ₹1,655 crore, taking a significant step ahead of the asset management company’s proposed initial public offering (IPO).
The country’s largest lender sold 13.65 lakh shares to French financial services group Amundi, its long-time joint venture partner in the mutual fund business. The transaction was completed at ₹12,125 per share, helping SBI unlock value from its investment while retaining a controlling stake in the company.
Following the deal, SBI’s holding in SBI Funds Management has come down from 62.11 per cent to 60.69 per cent. Amundi’s stake has increased from 37.89 per cent to 39.31 per cent. Despite the sale, SBI will continue to remain the majority shareholder and retain management control of the asset management business.
The transaction comes as SBI prepares for the proposed public listing of SBI Funds Management, one of India’s largest asset management companies. The IPO is expected to include an offer for sale (OFS), allowing existing shareholders to monetise part of their holdings rather than issuing fresh shares.
SBI Funds Management oversees assets worth more than ₹11 lakh crore and has built a strong presence across equity, debt and hybrid mutual fund schemes. The company has consistently remained among the country’s top asset managers, supported by SBI’s extensive branch network and Amundi’s global investment expertise.
Market participants believe the pre-IPO stake sale will help establish a benchmark valuation for the company before it enters the public markets. The proceeds will also strengthen SBI’s capital position while giving Amundi a larger share in the fast-growing Indian mutual fund industry.
The proposed IPO is expected to attract strong investor interest, given the continued growth in mutual fund investments and increasing participation from retail investors. India’s asset management industry has expanded rapidly over the past few years as more households have turned to systematic investment plans (SIPs) and market-linked investment products.
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