SBI And Amundi To Offload 10% In SBI Funds IPO

State Bank of India (SBI) and French asset manager Amundi have jointly initiated an initial public offering (IPO) to sell a combined 10.0013% stake in SBI Funds Management (SBIFML). SBI will offer 3.206 crore equity shares (6.3007%) and Amundi 1.883 crore shares (3.7006%), together amounting to 5.089 crore shares to be listed, subject to regulatory approvals.

Traders and investors now face a clear question: will the market see this as an opportunity to buy into India’s largest asset manager, or a signal to lock in promoter gains?

What Exactly Are SBI And Amundi Selling, And When Will It Happen?

The promoters have initiated the IPO process by seeking board approvals and appointing bankers; the IPO is expected to be completed by 2026, subject to SEBI and other clearances.

The offering represents a secondary sale by the two existing shareholders rather than fresh equity. SBI currently holds the majority shares with 61.9%, while Amundi holds around 36.4%. The move follows a trend of large Indian banks listing important companies to get more money and ownership.

What’s Driving The Timing And The Valuation Talk?

A few factors appear to be nudging both sellers towards the market now:

• Strong earnings and growth at SBIFML: The fund house reported a robust first half with net profit and operational momentum, supporting a favourable timing for listing. (SBIFML reported net profit of ₹15.86 billion in H1 of FY26.)

• Broader IPO momentum in India: 2025 has already seen heavy primary-market activity, making a well-known asset manager an attractive candidate to tap investor appetite. Analysts in the media are already flagging a possible valuation above ₹1 trillion for SBIFML, though final price discovery will follow bankers’ valuation work.

• Promoters’ capital strategy: SBI has listed other subsidiaries previously, and periodic promoter disinvestments are often used to shore up capital and meet strategic objectives. Could this be another value-unlocking exercise for SBI?

Which of these, earnings, market window or capital strategy, matters most for valuation? The answer will surface during the banker-led roadshow and pricing process.

What Should Investors Consider Before Bidding?

For retail and institutional investors alike, the IPO raises a handful of practical questions:

• Business fundamentals: SBIFML is a one of the leading AMC (asset management company) with a broad product range (equity, debt, hybrid and ETFs). Assess recent Assets Under Management (AUM) growth, margin trends and net flows versus peers. (Background on SBIFML’s history and operations is publicly available).

• Earnings quality: The H1 profit figure is useful, but investors should check fee yield, long-term net flows and expense trends before valuing recurring earnings.

• Lock-in and promoter commitment: Post-IPO promoter shareholdings will stay substantial, a positive from governance and continuity points of view, but any future dilution plans will be important.

• Price discovery and comparative multiples: Expect bankers to pitch valuation using comparable Indian and global listed fund managers; watch for price-to-earnings, price-to-AUM and fee-yield multiples when the draft prospectus appears.

Would investors treat this as a play on India’s long-term savings story (rising mutual fund penetration) or a near-term trading opportunity around listing pop? That will depend on final pricing and investor appetite.

Conclusion

The proposed 10% secondary sale by SBI and Amundi opens a rare chance to buy into an established fund manager. Key near-term checkpoints for investors include the draft prospectus, which will detail AUM and fee metrics, bankers’ valuation benchmarks, and the exact IPO timetable. Will the listing reward long-term investors who back India’s asset-management growth, or will early traders capture most of the gains at launch? The next few months of disclosures should make the picture clearer.

References

The Economic Times
Reuters
Moneycontrol
Reuters
Business Standard
Moneycontrol
Reuters
Business Standard
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