SBI Funds Management Targets ₹13,000 Crore IPO Through OFS, Aims For July Launch

SBI Funds Management, the country’s biggest mutual fund company by assets, is gearing up to launch its mega initial public offering (IPO), potentially in July. It had filed draft papers with the Securities and Exchange Board of India (SEBI) for its IPO in March 2026.

The SBI Funds Management IPO will consist entirely of an offer for sale (OFS) of 20.37 crore equity shares, which accounts for around 10% of the company’s equity. The company will not issue any fresh shares as part of the offering.

The issue is expected to be worth nearly ₹13,000 crore based on current estimates. State Bank of India plans to sell 12.83 crore shares, while France-based Amundi will offload 7.53 crore shares through the IPO. After the filing became public, the proposed listing quickly drew attention because it could become one of the largest offerings in India’s financial sector this year.

Key IPO Details At Glance

• Estimated launch: July 2026.

• Estimated IPO Size: Around ₹13,000 crore.

• Expected Valuation Post IPO: Nearly $15 billion.

• Total Shares in OFS: 20.37 crore equity shares.

• Stake Being Sold: Around 10%.

• SBI Stake Sale: 12.83 crore shares (6.3%).

• Amundi Stake Sale: 7.53 crore shares (3.7%).

• Fresh Issue Component: None.

• IPO Structure: Entirely offer for sale (OFS).

Why Is This IPO Drawing Attention?

SBI Funds Management has a strong presence in India’s mutual fund industry. According to the draft red herring prospectus (DRHP) filed with SEBI, the company managed quarterly average assets under management of nearly ₹12.5 lakh crore as of December 2025. That makes it the one of the largest asset management companies in the country.

The business was set up in 1992 and later became a joint venture after foreign investment entered the company. At present, SBI remains the majority shareholder with a 61.9% stake, while Amundi holds 36.4% as a strategic overseas partner.

Many market participants are closely tracking this issue because the asset management sector has become increasingly important in India’s investment landscape. Rising SIP inflows, expanding retail participation and growing awareness around mutual funds have helped large fund houses strengthen their position over the last few years.

If listed successfully, SBI Funds Management will join a small group of publicly traded asset management companies in India. These include HDFC AMC, Nippon Life India Asset Management and UTI AMC.

Also Read - Equity Margin Funding Crosses ₹1.2 Lakh Crore Amid Market Recovery

How Strong Are The Company’s Financials?

The company has reported steady growth in both revenue and profitability. For the nine months ended December 2025, profit rose to ₹2,432.9 crore from ₹1,933 crore in the corresponding period last year.

Revenue during the same period increased to ₹3,250.6 crore from ₹2,641.9 crore a year earlier. The growth reflects rising assets under management and continued inflows across schemes.

Despite the company’s strong position, the IPO arrives during a phase when investor sentiment towards public issues has turned selective. Market volatility and weaker listing performances in recent months have led investors to become more cautious before subscribing to new offerings.

Even so, analysts believe SBI Funds Management could still see healthy demand because of its leadership position, strong distribution reach and backing from SBI. The IPO is being managed by several investment banks, including Kotak Mahindra Capital, Axis Capital, ICICI Securities, JM Financial and SBI Capital Markets.

Moreover, senior executives from the fund house have led a series of meetings with the investment teams of the top 20 asset managers in order to secure commitments for the IPO and the anchor book.

Sources:

ET Now

Moneycontrol

SEBI

The Economic Times