SBI Mutual Fund IPO in 2026, chairman CS Setty confirms
What's the story
CS Setty, Chairman of State Bank of India (SBI), has confirmed plans to list SBI Mutual Fund within the next 12 months. In a conversation with The Economic Times, he said, "Our focus is on completing the IPO of SBI Mutual Fund within 12 months. No plans for other IPOs or stake sales." This announcement aligns with SBI's efforts to maintain a strong presence in India's financial market.
Financial health
Financial stability and future growth
Setty also emphasized that SBI doesn't need fresh capital for the next five years. He said, "With a capital-to-risk-weighted assets ratio (CRAR) at 15% and common equity Tier 1 (CET1) at 12%, SBI can support ₹12-13 lakh crore credit growth over five years without any equity dilution proceeds from the mutual fund IPO." This shows SBI's strong financial position and its ability to sustain future growth.
IPO process
SBI Mutual Fund's IPO preparation
SBI Mutual Fund, India's largest fund house, has started the process of appointing merchant bankers and other intermediaries for its IPO. The boards of respective shareholders such as SBI and Amundi have approved a 12-month timeline. Setty, who is also chairman of SBI Funds Management Ltd (SBIFML), said they are "very seriously working on that" and have already started identifying potential merchant bankers for the upcoming public offering.
Stake divestment
Stake sale details and market impact
The two promoters of SBIFML, SBI and Amundi India Holding, plan to sell a combined 10% stake through the public offering. Last month, SBI approved the offloading of 3,20,60,000 equity shares or 6.3% of SBIFML's total equity capital through an IPO. Amundi India Holding will divest 1,88,30,000 equity shares or 3.7% of SBIFML's total equity capital in this process.
Market position
SBI Mutual Fund's market presence and future prospects
Founded in 1992, SBIFML is a joint venture between SBI and France's Amundi. It manages assets worth ₹28.31 trillion and has a market share of 15.5%. This IPO will be the third time an SBI subsidiary is going public after SBI Cards and SBI Life Insurance. For investors, this move opens new avenues to tap into India's growing asset management sector while unlocking fresh value for SBIFML by combining SBI's reach with Amundi's global expertise.