SBI Funds Management IPO likely in 2027, to raise ₹13,000 crore: Setty
Synopsis
SBI is lining up what could be one of India's biggest AMC listings — a near ₹13,000 crore offer-for-sale in SBI Funds Management, targeted for 2027. With Amundi paring its stake alongside SBI, the float will test investor appetite for India's mutual fund story at a time of record SIP inflows and rising retail equity participation.
Key Takeaways
SBI expects to list SBI Funds Management on the exchanges in 2027 , Chairman CS Setty said.
The IPO is expected to raise nearly ₹13,000 crore , entirely via an offer-for-sale.
Existing shareholders will offload up to 20.37 crore shares , around a 10 per cent stake.
SBI will sell about 6.3 per cent ; Amundi will divest roughly 3.7 per cent .
SBIFML's DRHP was filed with SEBI in March ; current ownership is 63 per cent SBI , 37 per cent Amundi .
If listed, SBIFML will be SBI's third listed subsidiary after SBI Cards and SBI Life Insurance .
State Bank of India (SBI) expects to list its asset management arm SBI Funds Management Ltd (SBIFML) on the exchanges in 2027, SBI Chairman Challa Sreenivasulu Setty said on Wednesday at the CITI India 2026 Conference in Mumbai. Draft papers for the proposed initial public offering, expected to raise nearly ₹13,000 crore, have already been filed with market regulator SEBI.
Key Developments
Speaking with NDTV Profit, Setty confirmed that India's largest lender is pressing ahead with one of the most anticipated listings in the country's financial services sector. ‘Hope to list SBI AMC in CY27,' Setty said.
SBIFML had filed its draft red herring prospectus (DRHP) with SEBI in March. The proposed public issue is entirely an offer-for-sale (OFS), under which existing shareholders plan to offload up to 20.37 crore shares — roughly a 10 per cent stake.
How the Stake Sale Is Structured
Under the proposed structure, SBI plans to sell around a 6.3 per cent stake in the company, while joint venture partner Amundi Asset Management will divest approximately 3.7 per cent. SBIFML is currently owned 63 per cent by SBI and 37 per cent by Amundi.
If the listing goes through, SBIFML will become SBI's third listed subsidiary after SBI Cards and SBI Life Insurance.
Setty's Take on the Macro Picture
The SBI Chairman also struck an optimistic tone on India's long-term economic outlook despite rising geopolitical tensions and market volatility. ‘The whole global economy is navigating geopolitical volatility,' he said, adding that every year presents a fresh set of challenges for businesses and investors.
Setty urged investors to focus on the structural growth story rather than short-term market swings. ‘Don't look at Sensex, look at India as a long-term story,' he said. He added that India has moved beyond being a catch-up economy and is increasingly emerging as a defining growth story of the 21st century.
Why It Matters
At nearly ₹13,000 crore, the SBIFML IPO would rank among the largest listings in India's asset management industry — a sector that has seen sharp inflows on the back of rising SIP volumes and retail equity participation. The pricing and post-listing performance will be closely watched as a benchmark for other AMC float candidates in the pipeline.
What's Next
With the DRHP already on file, market participants will track SEBI's observations and the eventual price band. The actual listing window, per Setty's guidance, falls in calendar year 2027.
Point of View
Not funding growth. Investors will need to weigh the franchise quality and AUM trajectory against valuation, which at ₹13,000 crore for a 10 per cent stake implies a steep mark-up over the last visible benchmarks in the listed AMC space.
NationPress
5 Aug 2026
Frequently Asked Questions
When will SBI Funds Management list on the exchanges?
SBI Chairman CS Setty has said the company hopes to list SBI Funds Management in calendar year 2027. The DRHP was filed with SEBI in March, and the actual listing will depend on regulatory clearance and market conditions.
How much is the SBI Funds Management IPO expected to raise?
The IPO is expected to raise nearly ₹13,000 crore, making it among the largest listings in India's asset management industry. The issue is structured entirely as an offer-for-sale of up to 20.37 crore shares, roughly a 10 per cent stake.
Who is selling shares in the SBI Funds Management IPO?
SBI plans to sell around a 6.3 per cent stake, while joint venture partner Amundi Asset Management will divest approximately 3.7 per cent. SBI currently owns 63 per cent of SBIFML and Amundi holds the remaining 37 per cent.
Will SBI Funds Management raise fresh capital through this IPO?
No. The proposed public issue is entirely an offer-for-sale by existing shareholders, meaning the proceeds will go to the selling shareholders and not to the company itself. No fresh equity is being issued.
How does this fit into SBI's group listing strategy?
If the listing goes through, SBIFML will become SBI's third listed subsidiary after SBI Cards and SBI Life Insurance. It further unlocks value across SBI's financial services arms.
