SBI Funds Management IPO Moves Ahead After SEBI Approval; RHP Filing Likely In July

India's biggest asset manager is now a step closer to entering the stock market.

SBI Funds Management has secured approval from the Securities and Exchange Board of India (SEBI) for its proposed initial public offering (IPO). The regulator issued its observation letter on 12 June, according to details available on SEBI's website.

People familiar with the matter said the company is likely to file its red herring prospectus (RHP) in the first week of July. The IPO price band could also be announced around the same time.

No Fresh Shares, Only Stake Sale

The asset manager had filed its draft papers with SEBI on 19 March 2026.

Unlike many recent public issues, the proposed IPO will not involve the issuance of new shares. Rather, it will be a straightforward offer-for-sale (OFS), through which existing shareholders will be able to sell a part of their shares.

The issue involves up to 20.37 crore equity shares, equivalent to around 10% of the company's equity base.

At present, State Bank of India owns 61.76% of SBI Funds Management, while Amundi India Holding holds 36.26%.

From Joint Venture To Industry Leader

SBI Funds Management began its operation in 1992 and has since become the largest mutual fund house in the country. The company has been the leader in the industry since March 2021 and currently holds a market share of approximately 15.4%.

A major turning point came in 2004 when Societe Generale Asset Management SA acquired a 37% stake, turning the business into a joint venture. That stake later changed hands in 2011 when Amundi acquired it through Amundi India Holding.

If everything goes ahead as planned, the SBI Funds Management IPO will become the third SBI group company to be listed on Indian stock exchanges.

The offering will also add another listed player to India's asset management sector, joining companies such as HDFC Asset Management Company, Nippon Life India Asset Management, UTI Asset Management Company, Aditya Birla Sun Life Asset Management and ICICI Prudential Asset Management Company.

Earnings Growth Remains Strong

The company's financial performance has remained robust.

For the nine months ended December 2025, profit stood at ₹2,432.9 crore, up from ₹1,933 crore in the corresponding period a year earlier. Revenue during the period increased to ₹3,250.6 crore from ₹2,641.9 crore.

The trend was similar in FY25.

Net profit rose 22.5% year-on-year to ₹2,540.2 crore, while revenue climbed 33.7% to ₹3,597.8 crore.

Those numbers have helped strengthen investor interest ahead of the proposed listing.

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What Investors Will Watch Next

With SEBI's approval now in hand, attention will shift to the next set of filings.

The RHP is expected to reveal additional details on the offer, including the final issue structure and price band. Market participants will also be watching for clarity on valuation, which could make the IPO one of the most closely tracked public issues in India's financial services sector this year.

For now, the key date on investors' radar is early July, when the company is expected to take the next formal step towards its stock market debut.

Source:

Moneycontrol