SBI decides to divert 6.3% stake in SBI Fund Management via IPO

Core Viewpoint - State Bank of India (SBI) and Amundi India Holding are initiating an Initial Public Offering (IPO) for SBI Funds Management Limited (SBIFML), with SBI planning to divest 6.3007% and Amundi 3.7006% of their stakes, aiming for completion by 2026 [1][2][3]. Group 1: Company Overview - SBI currently holds a 61.91% stake in SBIFML, while Amundi holds 36.36% [3]. - SBIFML is the largest asset management company in India, with a market share of 15.55% and managing Quarterly Average Assets Under Management (QAAUM) of ₹11.99 trillion as of Q2 FY2025-26 [6]. Group 2: IPO Details - The IPO will involve a total of 10.0013% stake, equating to 5,08,90,000 shares to be listed [2]. - SBI Chairman stated that the IPO is timely due to SBIFML's strong performance and market leadership, aiming to maximize value for existing stakeholders and broaden market participation [3]. Group 3: Strategic Importance - The IPO is expected to enhance public visibility and reinforce SBIFML's position in the asset management industry [4]. - The partnership between SBI and Amundi is highlighted as a key factor in SBIFML's success, leveraging SBI's distribution network and Amundi's global expertise [4].