Mumbai: State Bank of India (SBI) will divest a 1.4 per cent stake in SBI Funds Management Ltd. through a pre-initial public offering (IPO) transaction worth around Rs 1,655 crore, ahead of the asset management company’s public listing.
According to an exchange filing, India’s largest public sector lender will sell 2.88 crore shares at Rs 574 per share. The transaction is part of the preparations for SBI Funds Management’s upcoming IPO, which is scheduled to open for public subscription next week.
SBI to remain largest shareholder
Despite the stake sale, SBI will continue to be the largest shareholder in SBI Funds Management.
Before the transaction, SBI held 126 crore shares, representing a 61.86 per cent stake in the asset management company. Following the sale of 2.88 crore shares, the bank will retain majority ownership and remain the company’s principal shareholder.
Amundi India Holding currently owns 74 crore shares, accounting for a 36.33 per cent stake, as detailed in the company’s Red Herring Prospectus (RHP).
Pre-IPO transaction valued at Rs 1,655 crore
The pre-IPO transaction values the stake sale at approximately Rs 1,655 crore.
SBI will sell the shares at Rs 574 each, allowing the bank to partially monetise its investment before the company is listed on the stock exchanges.
The move comes as part of the broader IPO process and is intended to streamline the shareholding structure before the public issue.
IPO to open on July 14
SBI Funds Management’s IPO will consist entirely of an Offer for Sale (OFS) by existing shareholders.
The company itself will not issue any fresh equity shares, meaning it will not receive any proceeds from the IPO.
Under the offer:
- SBI will sell up to 12.83 crore shares
- Amundi India Holding will offer up to 7.54 crore shares
- The total offer size will be up to 20.37 crore shares
The IPO is scheduled to:
- Open: July 14
- Anchor investor bidding: July 13
- Close: July 16
Investors will be able to bid for shares during the three-day subscription window.
One of India’s largest mutual fund managers
SBI Funds Management serves as the investment manager for SBI Mutual Fund and is jointly promoted by SBI, Amundi India Holding and Amundi Asset Management.
The company is among India’s largest asset management firms.
According to its prospectus, SBI Funds Management managed Rs 12.51 lakh crore in mutual fund assets as of March 2026, giving it a 15.3 per cent market share in the Indian mutual fund industry.
Including portfolio management services and advisory mandates, its quarterly average assets under management (AUM) stood at Rs 29.46 lakh crore.
IPO expected to attract investor interest
The upcoming IPO is expected to draw considerable attention from institutional as well as retail investors, given SBI Funds Management’s strong market position and extensive presence in India’s fast-growing mutual fund industry.
As the IPO comprises only an Offer for Sale, the proceeds will go to the existing shareholders selling their stakes rather than to the company.
The pre-IPO stake sale marks another step in the listing process, with the public issue set to open on July 14.
