SBI shares jump 3% after subsidiary SBI Funds Management files draft IPO papers

Synopsis

Shares of State Bank of India (SBI) rose sharply after its subsidiary SBI Funds Management filed draft IPO papers with Sebi for a pure offer for sale of 20.37 crore shares. Proceeds will go to selling shareholders, including SBI and Amundi India Holding.

Shares of State Bank of India (SBI) jumped more than 3% on Friday after the public lender’s subsidiary and India’s largest asset management company, SBI Funds Management, filed its draft IPO papers with market regulator Sebi to raise funds through the primary market.

In an exchange filing, SBI announced its subsidiary has filed the draft red herring prospectus (DRHP) with Sebi for an IPO of up to 20.37 crore equity shares, entirely comprising an offer for sale. This means that the proceeds from the IPO will go directly to the shareholders, and the company will not receive any amount.

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As part of the OFS, promoter SBI will sell 12.83 crore shares (representing a 6% stake in the subsidiary), while Amundi India Holding will sell 7.53 crore shares. The total issue size in rupee terms, along with the price band, has not yet been disclosed.

SBI Funds Management operates as the investment manager to its flagship mutual fund business and also offers portfolio management services (PMS), alternative investment funds (AIFs) and offshore advisory services. It served over 1.6 crore unique investors, as of December 2025, and manages mutual fund average assets under management (AUM) of Rs 6.06 lakh crore. The company holds a 15.4% market share by QAAUM, making it the largest AMC in India. SBI currently holds 61.86% stake in SBI Funds Management, while AMUNDI Asset Management holds 36.33% stake through a wholly owned subsidiary.

Kotak Mahindra Capital, Axis Capital, ICICI Securities and SBI Capital Markets are among the nine bankers handling the IPO.

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SBI shares have gained 2% in the past five days, but fallen more than 11% in the past month. The share price rose 26% in the past six months. India’s largest public sector lender posted strong results for the October-December quarter of the ongoing financial year 2026, with standalone net profit rising 24% YoY to Rs 21,028 crore and net interest income (NII) increasing 9% YoY to Rs 45,190 crore.

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