India's largest lender, State Bank of India (SBI), has approved the divestment of 3.20 crore equity shares, representing 6.3% of the total equity capital of its mutual fund arm, SBI Funds Management Ltd (SBIFML), through an initial public offering (IPO).

Amundi India Holding, the other promoter of SBIFML, will also sell 1.88 crore shares, equivalent to 3.7% of the total equity capital.

Together, both promoters will offload 10% stake, or 5.09 crore shares, in the proposed listing.

SBI said in an exchange filing that both promoters have jointly initiated the IPO process, which is expected to be completed in 2026.

Currently, SBI holds 61.91%, while Amundi India Holding owns 36.36% stake in SBIFML.

SBIFML is India's largest asset management company, with a 15.55% market share, managing

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