State Bank of India has decided to list its third subsidiary, after SBI Cards and SBI Life Insurance.

SBI Funds Management Ltd (SBIFML), the largest asset management company in the country, will head for an initial public offering (IPO) next year.

SBI and French-owned Amundi India Holding will jointly divest 10% stake in the mutual funds arm. While SBI will offload 6.3% stake, Amundi will divest 3.7% in the IPO. 

In a regulatory filing, SBI said it will divest 3,20,60,000 equity shares, amounting to 6.3007% of total equity capital of SBIFML through IPO, subject to regulatory approvals.

Amundi India Holding, the other promoter of SBIFML, will divest 1,88,30,000 equity shares, or 3.7006% of total equity capital of SBIFML, with a total of 10.0013% stake comprising 5,08,90,000 shares to be listed, it said.

SBI owns 61.91% of SBIFML while Amundi holds 36.36% stake. The rest 1.6% stake is held by 'Others' in SBIFML.

Both the promoters of SBIFML have jointly initiated the IPO, which is likely to be completed in 2026.

SBIFML has a market share of 15.55%, managing quarterly average assets under management (QAAUM for Q2 FY2026) of Rs 11.99 lakh crore under various schemes of SBI Mutual Funds and AUM of Rs 16.32 lakh crore under alternate funds as on 30 September 2025.

SBI Mutual Fund was set up in 1987 with SBI as the sponsor and was the first non-UTI mutual fund in India.

In 1992, SBI Funds Management Limited was incorporated as a wholly owned subsidiary of SBI as Investment Manager for SBI Mutual Funds to provide investment solutions across different asset classes.

Amundi acquired a stake in SBI Mutual Fund through a joint venture formed in April 2011.

The total income of SBI Mutual Fund was Rs 4,230.92 crore in FY25, 0.64% of the total income of SBI Group.

“Considering SBIFML’s sustained strong performance and market leadership over the years, it is considered an opportune time to launch the IPO process,” said SBI chairman CS Setty.