State Bank of India (SBI) and French asset management firm Amundi are set to jointly divest a 10% stake in SBI Funds Management through an initial public offering (IPO), with the listing expected in 2026.
SBI, which currently holds 61.9% of the asset manager, will offload 6.3% of its stake, while Amundi, which owns 36.4%, will sell 3.7%.
The remaining shares are held by other investors, including those participating in employee stock ownership programmes.
Amundi CEO Valérie Baudson said: “Over the years, SBI Funds Management Limited has established itself as the leader in India’s asset management industry.
“It has grown successfully, leveraging on the powerful distribution capacity of SBI’s network in India, combined with Amundi’s global expertise in asset management.
“This IPO will allow to unlock the value jointly created by SBI and Amundi, which will continue their long-term partnership in a fast-growing Indian market that presents significant development potential.”
SBI Funds Management is India’s largest asset manager, with a market share of more than 15% in mutual funds and assets under management totalling around Rs28.31tn ($319bn).
The firm provides mutual fund and investment portfolio services to both retail and institutional investors.
For the first half of the current fiscal year, the asset manager reported a net profit of Rs15.86bn, representing a 15% increase compared to the same period last year.
This is the second time SBI and Amundi have moved to list the asset manager, following an earlier announcement in 2021.
The planned offering will mark the third public listing of an SBI subsidiary, following SBI Cards and SBI Life Insurance.
SBI chairman Challa Sreenivasulu Setty said: “SBI Funds Management Limited will be the third subsidiary of SBI to be listed after SBI Cards and SBI Life Insurance. Considering SBIFM’s sustained strong performance and market leadership over the years, it is considered an opportune time to launch the IPO process.
“Apart from maximising value realisation for the existing stakeholders, the IPO will create opportunities for the general shareholders, broaden market participation and lead to increased awareness of products to a wider set of potential investors.
“This will further enhance the public visibility of the Company, thereby reinforcing its position as a leading player in the asset management industry.”
Recently, the Reserve Bank of India (RBI) rejected SBI Capital Markets’ request to raise its stake in an institutional equities joint venture (JV) with Investec’s local unit.
