State Bank of India to Sell 6.3% Stake in SBI Funds Management Limited via IPO

Mumbai, India – March 19, 2026: State Bank of India (BSE: 500112, NSE: SBIN) has announced its plan to divest a 6.3% stake in its subsidiary, SBI Funds Management Limited (SBIFML), through an initial public offering (IPO). The IPO filing was made via a draft red herring prospectus submitted to the Securities and Exchange Board of India (SEBI) today.

The IPO proposes a total offering of 203,709,239 equity shares, representing 10.0013% of SBIFML’s paid-up share capital, of which SBI will sell 128,334,397 shares (6.3%). The remaining 75,374,842 shares (3.7%) will be offered for sale by Amundi India Holding.

The number of shares being sold by SBI has been revised due to bonus shares and ESOPs exercised by employees, increasing the total shares offered while keeping the stake proportion constant at 6.3%.

The IPO is subject to regulatory approvals, market conditions, and other factors, and represents a key step in enabling public participation in one of India’s leading asset management companies.

Significance of the Offering:

• Allows SBI to partially monetize its holding in SBIFML

• Provides an opportunity for investors to participate in India’s growing mutual fund sector

• Strengthens corporate governance and public market presence for SBIFML

About SBI Funds Management Limited:
SBIFML is a prominent Indian asset management company and a wholly-owned subsidiary of State Bank of India, offering a wide range of mutual fund products and investment services.

This strategic IPO is expected to attract strong investor interest, given SBIFML’s established market reputation and India’s growing investment sector.