SBI Mutual Fund kicks off IPO process

SBI Mutual Fund, the country’s largest fund house, has formally begun the process of appointing merchant bankers and other intermediaries for its upcoming initial public offering (IPO). The boards of SBI, Amundi and SBI Funds Management Ltd (SBIFML) have approved a 12-month timeline to take the fund house public, SBI Chairman C S Setty told PTI.

Setty said the IPO roadmap is now in motion, with efforts underway to select merchant bankers and other service providers. SBIFML, a joint venture between State Bank of India and Paris-based Amundi, holds 61.98 per cent and 36.40 per cent stake respectively. The fund house managed around Rs 12 lakh crore in assets as of September 2025.

Both promoters plan to offload a combined 10 per cent stake through the IPO. SBI will divest 6.3007 per cent, equal to 3,20,60,000 shares, while Amundi will sell 3.7006 per cent, or 1,88,30,000 shares—together amounting to 5,08,90,000 shares.

SBIFML is the largest asset management company in India with a 15.55 per cent market share. It managed Quarterly Average AUM of Rs 11.99 lakh crore in Q2 FY26, apart from Rs 16.32 lakh crore under alternate investment funds.

SBI Mutual Fund, established in 1987 as India’s first non-UTI mutual fund, posted a total income of Rs 4,230.92 crore in FY25.

Setty also reiterated confidence in achieving SBI’s 3 per cent net interest margin target despite the RBI’s recent 25-bps repo rate cut to 5.25 per cent, and said the bank does not foresee the need for additional equity capital over the next five to six years.