SBI Funds Management IPO: How SBI’s ₹19-crore investment grew to ₹72,300 crore, Amundi’s ₹322 crore to ₹42,500 crore

SBI Funds Management’s proposed ₹11,693-crore initial public offering (IPO) is set to unlock massive value for its promoters, with State Bank of India (SBI) and France’s Amundi India Holding together sitting on a stake worth more than ₹1.14 lakh crore at the upper end of the price band.

The country’s largest asset manager has fixed a price band of ₹545-574 per share for its IPO, which opens for public subscription on July 14. The issue, entirely an offer for sale (OFS), values the asset management arm of SBI Mutual Fund at around ₹1.17 lakh crore, making it one of India’s most valuable listed asset management companies.

For SBI, the listing marks one of the biggest value-unlocking events in its corporate history. The country’s largest lender owns a 61.73% stake in SBI Funds Management, a joint venture with Europe’s Amundi, which holds a 36.26% stake.

SBI currently owns 126 crore shares in SBI Funds Management. According to the draft red herring prospectus (DRHP); the lender acquired these shares at a weighted average cost of just ₹0.15 apiece, translating into a total investment of about ₹19 crore.

At the upper end of the IPO price band, SBI’s stake is valued at nearly ₹72,300 crore, representing an appreciation of around 3,800 times its original investment.

Joint venture partner Amundi India Holding has also generated substantial value from its investment. The French asset manager owns 74 crore shares, acquired at a weighted average cost of ₹4.35 per share, implying a total investment of about ₹322 crore.

At ₹574 per share, Amundi's stake is valued at around ₹42,500 crore, representing a return of more than 132 times its original investment.

IPO entirely an OFS by promoters

The SBI Funds Management IPO is entirely an offer for sale (OFS), with no fresh issue component. As a result, the entire proceeds from the public issue will accrue to the selling shareholders—SBI and Amundi India Holding—while the company will not receive any funds from the offering.

SBI will sell up to 12.83 crore shares, representing a 6.3% stake, while Amundi India Holding will offload up to 7.53 crore shares, equivalent to a 3.7% stake. Together, the promoters will divest around 10% of the company through the public issue while continuing to own nearly 88% after the listing.

Through the share sale, SBI is set to generate around ₹7,364 crore, while Amundi India Holding will realise about ₹4,322 crore.

SBI and Amundi had announced plans to list the company in November last year, saying the IPO would broaden the shareholder base, deepen investor participation and enhance visibility of the asset manager’s investment offerings.

The anchor investor portion opens on July 13, while the public issue will remain open between July 14 and July 16. The basis of allotment is expected on July 18, with the stock scheduled to list on July 21.

The listing will make SBI Funds Management the third listed subsidiary of SBI after SBI Life Insurance and SBI Cards & Payment Services.

Founded in 1992, SBI Funds Management has grown into India’s largest asset management company, commanding more than 15% market share and managing assets exceeding ₹28 lakh crore. Its business operates on a highly scalable, fee-based model, with management fees linked to growth in assets under management (AUM), enabling operating leverage as assets expand.

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