State Bank of India (SBI) has approved the divestment of 3,20,60,000 equity shares, representing 6.3007% of its stake in SBI Funds Management Ltd. (SBIFML) through an Initial Public Offering (IPO), subject to regulatory approvals.

Co-promoter Amundi India Holding will also sell 1,88,30,000 shares (3.7006%), taking the total stake to be offered in the IPO to 10.0013% or 5,08,90,000 shares. The listing is expected to be completed in 2026.

SBIFML, the investment manager of SBI Mutual Fund, is India’s largest asset management company with a 15.55% market share and ?11.99 trillion QAAUM (Q2 FY26). SBI currently holds 61.91%, while Amundi owns 36.36% in the company.

SBI Chairman Challa Sreenivasulu Setty said the IPO will unlock value, widen investor participation, and enhance public visibility. Amundi CEO Val‚rie Baudson called it an opportunity to showcase the success of the long-term SBI–Amundi partnership in India’s fast-growing asset management market.