New Delhi, June 3 (IANS) India’s largest lender, State Bank of India (SBI), expects to list its asset management arm SBI Funds Management Ltd (SBIFML) on the exchanges in 2027, with draft papers for the proposed public issue already filed with market regulator Sebi, SBI Chairman Challa Sreenivasulu Setty said on Wednesday at the CITI India 2026 Conference in Mumbai.

Speaking with NDTV Profit, Setty said the country’s largest lender is moving ahead with plans for the initial public offering (IPO) of SBI Funds Management, one of the most anticipated listings in India’s financial services sector.

“Hope to list SBI AMC in CY27,” Setty said.

However, SBI Funds Management had filed its draft red herring prospectus (DRHP) with the market regulator SEBI in March.

The proposed public issue is entirely an offer-for-sale (OFS), under which existing shareholders plan to offload up to 20.37 crore shares, around a 10 per cent stake.

The IPO is expected to raise nearly Rs 13,000 crore, making it among the largest listings in India’s asset management industry.

Under the proposed structure, SBI plans to sell around a 6.3 per cent stake in the company, while joint venture partner Amundi Asset Management will divest approximately 3.7 per cent stake.

SBI Funds Management is currently owned 63 per cent by SBI and 37 per cent by Amundi.

Setty also struck an optimistic tone on India’s long-term economic outlook despite rising geopolitical tensions and market volatility.

“The whole global economy is navigating geopolitical volatility,” he said, adding that every year presents a new set of challenges for businesses and investors.

However, he urged investors to focus on India’s structural growth story rather than short-term market fluctuations.

“Don’t look at Sensex, look at India as a long-term story,” Setty said.

He further noted that India has moved beyond being a catch-up economy and is increasingly emerging as a defining growth story of the 21st century.

SBIFML will become SBI’s third listed subsidiary after SBI Cards and SBI Life Insurance if the proposed listing goes through.

–IANS

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