By Kavita Mistry 
In a significant development for India’s financial sector, State Bank of India (SBI) and Amundi, Europe’s largest fund manager, have announced plans to jointly sell a 10% stake in SBI Funds Management (SBIFM) through an initial public offering (IPO). The move marks the asset management firm’s long-awaited entry into the public market and aims to unlock shareholder value amid India’s booming IPO climate.
India’s Largest Fund Manager Set for Market Debut
SBI Funds Management, a joint venture between SBI and Amundi, is India’s largest asset management company (AMC), commanding a 15% market share and managing assets worth nearly ₹120 billion ($1.37 billion). The fund serves both retail and institutional investors through its extensive mutual fund and portfolio management offerings.
This IPO marks the third listing of an SBI subsidiary, following the successful debuts of SBI Cards and SBI Life Insurance.
Stake Split and Listing Timeline
According to SBI’s announcement, the lender will sell a 6% stake, while Amundi will offload 3.7% of its holdings. Currently, SBI holds 61.9% in SBIFM and Amundi owns 36.4%.
The IPO is expected to be completed in 2026, with SBI beginning the process of appointing investment bankers and conducting a fresh valuation. The listing is likely to position SBIFM among India’s most valuable financial services firms upon debut.
IPO Market Momentum in India
The SBI-Amundi offering comes amid a record-breaking year for India’s IPO market. According to LSEG data, over 240 firms raised $10.5 billion in the first nine months of 2025, making India the third-largest market globally for primary fundraising.
High-profile listings by Tata Capital, LG Electronics India, and HDB Financial have already pushed IPO proceeds beyond $20 billion, highlighting strong investor appetite for quality assets.
Unlocking Value and Growth Potential
“This listing will unlock value for the asset manager, and the Indian market presents significant development potential,” said Valérie Baudson, CEO of Amundi, which manages €2.3 trillion in assets.
SBIFM posted a net profit of ₹15.86 billion in the first half of FY2025–26, a 15% year-on-year increase, reflecting the robust growth of India’s mutual fund industry driven by rising retail participation and digital investing platforms.