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New IPO: SBI is preparing to sell 6.3 percent stake of its subsidiary SBI Funds Management Limited through IPO. There is a plan to raise Rs 7000 to 8000 crore from this.
Upcoming IPO: The country’s largest bank, State Bank of India i.e. SBI, has planned to list one more of its subsidiaries in the stock market. This company is SBI Funds Management Limited, which runs SBI Mutual Fund.
The bank has decided that it will sell 6.3 percent stake in this company. This sale will be done through IPO i.e. Initial Public Offering. This will help the bank to raise capital worth thousands of crores of rupees. This deal can be done at a valuation of Rs 7000 to Rs 8000 crore.
Preparation to sell 3 crore shares
On November 6, the Executive Committee of Central Board of SBI gave the green signal to this proposal in its meeting. The bank told the stock exchange in its filing that it will sell a total of 3 crore 20 lakh 60 thousand equity shares. These shares constitute exactly 6.3007 percent of the total stake of the company. But all this will happen only after regulatory approvals.
Talking about SBI Funds Management, it is one of the largest mutual fund management companies in India. It operates SBI Mutual Fund and is a joint venture. On one side is SBI, which holds 63 percent stake in the company, and on the other side is France’s Amundi Asset Management, which holds the remaining 37 percent. By the end of the financial year 2025, the assets under management i.e. AUM of this fund was more than Rs 8.5 lakh crore. The company has more than 80 lakh active investors and more than 250 fund schemes are running. It is on top in both investor base and scheme value.
What will be the benefit to SBI from this IPO?
Analysts believe that this will increase the capital buffer strength of the bank. That means the bank will have a stronger capital shield. In the coming days, the bank’s valuation and investor confidence will also become stronger. Till now SBI has not disclosed the size or valuation of the IPO, but it could become the largest IPO in India’s asset management industry.
First of all, the draft red herring prospectus of IPO will be submitted to DRHP, CBI and stock exchanges. Experts estimate that after getting all the approvals, the listing may happen in the first half of 2026.
This step is very important for SBI Group. The bank has earlier also raised a good amount of money from the market by selling stake in many of its subsidiary companies. Like SBI Life Insurance, SBI Cards and SBI Capital Markets. All this is part of the planning of “unlocking value”. It means taking advantage of your properties by bringing them to the market at the right price. This IPO is a big opportunity not only for SBI but for the entire mutual fund sector. Big and small investors are keeping their eyes on this IPO.
