MUMBAI: State Bank of India said it will divest 3.2 crore shares, or 6.3%, of its stake in SBI Funds Management through an IPO, subject to regulatory approvals. Co-promoter Amundi India Holding will sell 1.9 crore shares, or 3.7%, taking the total offering to 10% of the company’s equity, or about 5.1 crore shares. The IPO, jointly initiated by SBI and Amundi, is expected to be completed in 2026.SBI holds about 61.9% in the asset manager, while Amundi owns 36.4%. According to people familiar with the matter, SBI could seek a valuation of around Rs 1 lakh crore for the business. The bank will retain a majority stake after the IPO.SBI Funds Management is the country’s largest asset manager with a 15.6% market share, managing quarterly average assets under management of Rs 11.99 trillion in Q2 FY26 and alternate assets worth Rs 16.32 trillion as of Sept 30, 2025. The company reported a total income of Rs 4,230.9 crore in FY25, about 0.6% of SBI Group’s consolidated income, and reserves and surplus of Rs 5,108.6 crore.Founded in 1987 as India’s first non-UTI mutual fund, SBI Mutual Fund became a wholly owned subsidiary in 1992, managing investment operations for SBI. HDFC Asset Management currently trades at a market valuation of Rs 1.15 lakh crore.SBI chairman CS Setty said the IPO will make SBI Funds Management the third listed subsidiary after SBI Cards and SBI Life. He said the listing would maximize value for shareholders, broaden market participation, and enhance visibility for the company.Amundi chief executive Valérie Baudson said the IPO would unlock value created jointly by SBI and Amundi, combining SBI’s distribution reach with Amundi’s global expertise. She said both partners will continue their long-term collaboration in India’s fast-growing asset management market.