SBI Mutual Fund IPO: SBI and Amundi to Divest 10% Stake in India’s Largest Asset Management Company
State Bank of India (SBI), the country’s largest lender, and its French partner Amundi India Holding have announced plans to jointly divest a 10% equity stake in SBI Funds Management Ltd (SBIFML) — India’s largest mutual fund house — through an initial public offering (IPO). The public issue, expected to be completed in 2026, will pave the way for the listing of the country’s top asset management company on domestic stock exchanges.
IPO Structure and Promoter Divestment
Under the proposed offer, SBI will offload 3.20 crore shares, representing 6.30% of SBIFML’s total equity, while Amundi India Holding will divest 1.88 crore shares, equivalent to 3.70%. Together, the two promoters will dilute a combined 10% stake, subject to regulatory and market approvals.
Currently, SBI and Amundi hold 61.91% and 36.36%, respectively, in SBIFML. Both partners have jointly initiated the IPO process and are expected to finalize the listing by next fiscal year (FY27).
Market Leadership and Financial Scale
SBI Funds Management commands a 15.55% market share in India’s ₹78 lakh crore mutual fund industry, making it the largest asset manager in the country. As of September 30, 2025, the AMC managed ₹11.99 lakh crore in quarterly average assets under management (QAAUM) under various SBI Mutual Fund schemes and an additional ₹16.32 lakh crore in alternate assets, reflecting its leadership across both retail and institutional segments.
Legacy and Global Partnership
Established in 1987, SBI Mutual Fund was India’s first non-UTI mutual fund, sponsored by the State Bank of India. In 1992, SBI Funds Management Ltd was incorporated as a wholly owned subsidiary of SBI to act as the investment manager for its schemes.
In April 2011, Amundi Group, one of Europe’s largest asset managers, entered into a joint venture with SBI by acquiring Société Générale’s stake in the AMC. This strategic alliance has strengthened SBIFML’s global risk management, product innovation, and governance standards.
Valuation Outlook and Peer Comparison
Industry estimates suggest that SBI Funds Management could command a valuation of ₹80,000–90,000 crore, potentially making it India’s most valuable listed AMC upon debut.
For context:
HDFC AMC, currently India’s largest listed asset manager, has a market capitalization of approximately ₹65,000 crore.
Nippon India AMC trades around ₹45,000 crore.
UTI AMC, another major player, is valued near ₹20,000 crore.
Given its superior market share, brand reach, and distribution network through SBI’s extensive banking ecosystem, analysts expect SBI MF’s valuation multiples to exceed those of its listed peers.
Market participants also believe that the IPO could unlock substantial value for SBI and Amundi, while providing investors with exposure to the country’s fastest-growing savings and investment segment.
Strategic and Industry Significance
The SBI MF IPO is being viewed as a watershed moment for India’s mutual fund industry, reflecting both the sector’s scale and maturity. The listing is expected to enhance transparency, improve corporate governance, and attract greater institutional participation.
Analysts note that the Indian AMC space has grown at a CAGR of over 15% over the past decade, driven by rising financial literacy, expanding retail participation, and increasing investor trust in professionally managed funds.
With its dominant market position, robust profitability, and trusted brand, SBI Mutual Fund is well positioned to capitalize on India’s long-term wealth creation trend.