India’s largest lender, State Bank of India (SBI), is set to list its asset management arm, SBI Funds Management Ltd (SBIFML), on the exchanges in 2027. SBI Chairman Challa Sreenivasulu Setty announced this during the CITI India 2026 Conference in Mumbai. The draft papers for the proposed public issue have already been filed with market regulator Sebi.
Setty mentioned to NDTV Profit that SBI is progressing with plans for the initial public offering (IPO) of SBI Funds Management, which is highly anticipated in India’s financial services sector. The IPO is expected to raise nearly Rs 13,000 crore, making it one of the largest listings in India’s asset management industry.
SBI Funds Management had filed its draft red herring prospectus (DRHP) with the market regulator SEBI in March. The proposed public issue will be an offer-for-sale (OFS), with existing shareholders looking to offload up to 20.37 crore shares, approximately a 10% stake in the company.
Under the proposed structure, SBI intends to sell about a 6.3% stake in the company, while joint venture partner Amundi Asset Management will divest around 3.7% stake. Currently, SBI Funds Management is owned 63% by SBI and 37% by Amundi.
Setty expressed optimism about India’s long-term economic prospects despite increasing geopolitical tensions and market volatility. He emphasized focusing on India’s structural growth story rather than short-term market fluctuations. Setty highlighted that India is transitioning from being a catch-up economy to a defining growth story of the 21st century.
If the proposed listing materializes, SBIFML will become SBI’s third listed subsidiary, following SBI Cards and SBI Life Insurance.
