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SBI Divests 3% Stake in SBI Fund Management to Global Investor for ?2,500 Crores.

Economy | Dated: 08 Nov 2025

The State Bank of India (SBI) announced the sale of a 3% stake in its mutual fund arm, SBI Fund Management Private Limited, to a prominent global institutional investor for a consideration of ₹2,500 Crores. This divestment values the fund house at approximately ₹83,333 Crores ($10 billion). The move is part of SBI's strategy to monetize non-core assets, strengthen its capital base, and further unlock value in its subsidiaries. SBI Fund Management is one of India's largest Asset Management Companies (AMCs) by Assets Under Management (AUM).

🎯 Key Highlights:

  • SBI sold a 3% stake in SBI Fund Management (SBIFM).
  • The transaction value was ?2,500 Crores, valuing the fund house at over $10 billion.
  • The divestment is part of SBI's non-core asset monetization strategy.

💡 Other Important Facts:

  • The global investor is expected to bring strategic inputs to the fund house.
  • The valuation reflects the high investor interest in India's growing mutual fund industry.
  • Proceeds from the sale will be used by SBI for general corporate purposes.

📚 Test Your Knowledge:

What was the valuation of SBI Fund Management after the 3% stake sale?

Correct Answer: Approximately $10 Billion

🚀 Quick Recap:

About SBIFM

  • (i) Full Form: SBI Fund Management Private Limited (ii) Status: Joint Venture with Amundi (France)
  • (iii) Category: One of India's largest AMCs by AUM (iv) Parent: State Bank of India.