SBI has no plans for further stake sale in SBI Funds after IPO: chairman Setty

Mumbai: State Bank of India (SBI) has no immediate plans to further dilute its stake in SBI Funds Management following the asset manager’s successful stock market listing, chairman C.S. Setty said on Tuesday.

"At this moment, we are not looking for any more dilution. Of course, the whole dilution process will depend on the public shareholding norms of Securities Exchange Board of India (Sebi),” Setty said at the sidelines of the listing.

SBI Funds Management on Tuesday listed at ₹613.30 on the National Stock Exchange, a 6.85% premium over the initial public offering price of ₹574 per share.

The listing was below expectations as the grey market premium (GMP) was ₹95.5, signalling an estimated listing price of ₹669.5, which is 16.64% higher than the IPO price.

The IPO was entirely an offer for sale of 17.10 crore equity shares by existing promoters, SBI and Amundi India Holding. It was priced in the range of ₹545 to ₹574 per share and raised ₹9,812.91 crore through a book-built issue.

Setty also indicated that while SBI will continue evaluating listing opportunities for other subsidiaries, there is no immediate roadmap to do so. Asked whether the bank’s remaining large unlisted subsidiaries could be listed next, he said he would not comment during the silent period but added that SBI has consistently built businesses through its subsidiary model.

“We would definitely look for opportunities as these evolve and mature and reach a stage,” he said, without specifying a timeline.

Speaking on the rationale behind the listing, Setty said the objective was not to raise capital but to bring a large, systemically important asset manager to the public markets.

He added that the listing does not alter the long-standing partnership between SBI and French asset manager Amundi. “This listing does not change anything about our relationship and partnership,” Setty said.

On the valuation and listing gains, Setty defended the pricing of the IPO, saying the offer was designed to ensure broad investor participation. “When 6.3 million investors participate in an IPO, we look at everyone to have something in their hand,” he said.

According to NSE data, the public issue received an overall subscription of 41.66 times. The retail investor portion was subscribed 3.60 times, while the non-institutional investors (NII) segment saw 22.51 times subscription. The qualified institutional buyers (QIB) category witnessed the strongest demand, attracting 140.11 times the subscriptions.

Kotak Mahindra Capital Co. Ltd acted as the book-running lead manager for the issue, while Kfin Technologies Ltd served as the registrar.

Founded in 1992, SBI Funds Management, the investment manager of SBI Mutual Fund, is India's largest asset management company in terms of AUM.

The company’s monthly average assets under management (MAAUM) rose 13.2% year-on-year to ₹12.61 trillion as of December 31, 2025, cementing its position as India’s largest asset manager with a 15.4% market share by quarterly average AUM, according to its draft red herring prospectus.

In FY26, SBI Funds Management posted total income of ₹4,969 crore, accounting for around 0.70% of the SBI Group's overall income.