SBI Mutual Fund Plans A ₹13,000 Crore IPO Through OFS
- By Kotak News Desk
- 12 Mar 2026 at 1:33 PM IST
- Market News
- 4m
Never miss key market movements
Set Kotak Neo as your preferred content on Google.
SBI Fund Management Pvt. Ltd, the asset management arm of State Bank of India, is preparing to file a DRHP for its proposed IPO by the end of March. The issue, expected to be around ₹13,000 crore, will be entirely an offer for sale by existing shareholders, including SBI and Amundi.
SBI Fund Management Pvt. Ltd, the asset management arm of the State Bank of India, is preparing to file a draft red herring prospectus (DRHP) for its initial public offering (IPO) by the end of March.
The fund house had earlier aimed to file the DRHP by the end of February. However, the timeline shifted after an extended audit review.
According to people familiar with the matter, the audit process took longer than expected and may still push the filing by another two to three months if additional verification is required.
Nine investment banks have been appointed to manage the offering. These include Bank of America, Kotak Mahindra Capital, and HSBC, among others.
What Is Proposed Valuation And Market Position?
SBI Mutual Fund is reportedly targeting a valuation of around ₹1.3 lakh crore.
The asset manager would be able to get a price-to-earnings (P/E) multiple of about 51x at the proposed valuation, which is a bit more than the one of ICICI Prudential Asset Management Company that is currently trading at around 50.4x.
What Is The Expected IPO Size?
If the issue proceeds as planned, SBI Mutual Fund could launch an IPO worth about ₹13,000 crore, placing it among the largest public offerings in India’s financial services sector.
For perspective, here is how the expected issue size compares with some of the biggest IPOs in India:
Life Insurance Corporation of India | 20,557 |
One97 Communications (Paytm) | 18,300 |
Tata Capital | 15,511 |
HDB Financial Services | 12,500 |
The proposed issue would also be roughly 30% larger than the IPO of ICICI Prudential AMC, which was previously the closest comparable listing in the asset management space.
The fund house plans to keep IPO expenses relatively modest. Total spending on the issue is expected to be under ₹75 crore, significantly lower than the roughly ₹150 crore spent by ICICI Prudential AMC during its IPO.
What Is Offer Structure?
The IPO is expected to be entirely structured as an offer for sale (OFS), with both majority shareholders planning to dilute their stakes. No fresh shares will be issued.
State Bank of India | 6.3% | Over ₹8,000 crore |
Amundi | Partial stake | Less than ₹5,000 crore |
SBI Mutual Fund is currently a joint venture between State Bank of India and the French asset management group Amundi.
Also Read - US Initiates ‘Unfair Trade’ Probe Targeting India And 15 Other Countries
What Investors Should Watch Next?
Investors can watch the DRHP filing timeline and the final price band, as these can indicate the market’s appetite for the issue.
Sentiment will be further influenced by the magnitude of the stake sale by the State Bank of India and Amundi and also by valuation comparisons with ICICI Prudential Asset Management Company.
Sources:
CNBCTV18
Free Press Journal
This article is for informational purposes only and does not constitute financial advice. It is not produced by the desk of the Kotak Securities Research Team, nor is it a report published by the Kotak Securities Research Team. The information presented is compiled from several secondary sources available on the internet and may change over time. Investors should conduct their own research and consult with financial professionals before making any investment decisions. Read the full disclaimer here.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing. Brokerage will not exceed SEBI prescribed limit. The securities are quoted as an example and not as a recommendation. SEBI Registration No-INZ000200137 Member Id NSE-08081; BSE-673; MSE-1024, MCX-56285, NCDEX-1262.
Kotak News Desk brings you latest updates, expert insights, and market-ready ideas - helping you stay informed and invest smarter.
Connect on: Linkedin
0 people liked this article.
