The State Bank of India (SBI) has announced that its subsidiary SBI Funds Management Limited (SBIFML) will launch an Initial Public Offering (IPO). SBIFML has filed a Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for the IPO. The issue will include up to 203,709,239 equity shares of face value ₹1 each, which represents about 10.0013% of the company’s total share capital.
SBI Funds Management Limited (SBIFML) is a joint venture between
State Bank of India (SBI) and Amundi (France),
one of the world’s leading fund management companies.
A shareholder agreement was signed on April 13, 2011 between SBI and Amundi Asset Management.
- SBI: 61.86% stake
- Amundi (via Amundi India Holding): 36.33% stake
- Others: 1.81% stake
Earlier, Amundi India Holding’s stake was held by
Societe Generale Asset Management (SGAM), a subsidiary of
Societe Generale (SG). This stake was transferred to Amundi in
June 2011 after approval from SEBI under Mutual Fund regulations.
The IPO will be completely an Offer for Sale (OFS), which means no new shares will be issued by the company. Instead, existing shareholders will sell their stake. SBI will sell up to 128,334,397 shares (6.3007%), while Amundi India Holding will sell up to 75,374,842 shares (3.7006%). Earlier, SBI had planned to sell around 3.20 crore shares, but now this number has increased to 12.83 crore shares due to the issue of bonus shares and exercise of ESOPs by employees. However, the percentage stake being sold by SBI remains the same.
The IPO will be carried out through the book-building process as per SEBI regulations. However, the issue is still subject to regulatory approvals, market conditions, and other factors, so the final timeline is not yet fixed. The price band and final issue price will be decided later as per market conditions and SEBI guidelines.
As per financial data for FY 2024-25, SBIFML reported a total income of ₹4,230.92 crore, which is about 0.64% of SBI Group’s total income, and a reserve and surplus of ₹5,108.56 crore, which is around 1.19% of the group’s total reserves. Overall, this IPO is expected to help SBI unlock value from its subsidiary while giving investors an opportunity to invest in one of India’s leading mutual fund companies.
