Mumbai, June 3: SBI Funds Management Limited (SBI FM), the asset management arm of the State Bank of India (SBI), is expected to go public in 2027. This announcement was made by SBI Chairman Challa Srinivasulu Setty during the City India 2026 Conference.
In an interview with NDTV Profit on the sidelines of the event, Setty revealed that SBI is preparing to launch an IPO for SBI FM. The draft papers have already been submitted to the Securities and Exchange Board of India (SEBI).
Setty stated, “The listing of SBI AMC is anticipated in the calendar year 2027.”
The proposed IPO is expected to raise around ₹13,000 crores. If successful, it would be the largest IPO in India’s asset management industry to date.
The entire IPO is likely to be an offer-for-sale (OFS), with approximately 20.37 crore shares expected to be sold, representing about 10 percent of the total shareholding.
Under the proposed structure, SBI plans to sell around 6.3 percent of its stake in the company, while joint venture partner Amundi Asset Management is set to sell approximately 3.7 percent.
Currently, SBI holds a 63 percent stake in SBI Funds Management, with Amundi owning the remaining 37 percent.
Despite geopolitical tensions and increased market volatility, Setty remains optimistic about India’s long-term economic outlook.
He noted, “The entire global economy is facing geopolitical instability,” adding that this brings new challenges for businesses and investors each year.
However, he urged investors to focus on India’s structural growth story rather than short-term market fluctuations.
“Don’t just look at the Sensex; view India as a long-term growth story,” Setty emphasized.
He further stated that India is no longer a backward economy and is rapidly emerging as a decisive growth narrative of the 21st century.
If the proposed listing is successful, SBI FM will become SBI’s third listed subsidiary, following SBI Cards and SBI Life Insurance.
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