India’s largest asset management company, SBI Funds Management, has formally moved its long-anticipated public listing plans into execution mode by appointing a consortium of nine domestic and global investment banks for a proposed IPO that could raise USD 1.4 billion (~INR 12,630 crore) in the first half of 2026.
According to a report, the company has mandated Kotak Mahindra Capital, Axis Capital, SBI Capital Markets, Motilal Oswal Investment Advisors, ICICI Securities, JM Financial, along with the Indian investment banking arms of Citigroup, HSBC, and Bank of America, marking one of the most significant banker line-ups for an Indian financial services IPO in recent years. Formal engagement letters are expected to be signed shortly, subject to final board approvals.
Valuation and Offer Structure
Market discussions indicate that SBI Funds Management may be valued at around USD 14 billion (~INR 1.26 lakh crore), placing it broadly in line with recent peer transactions in the asset management space. SBI Funds Management IPO is expected to be structured as a pure offer-for-sale (OFS), with the promoters collectively divesting around 10% equity.
The company is jointly owned by State Bank of India, which holds just under 62%, and France-based asset management major Amundi SA, which owns about 36–37%. Both shareholders have previously indicated their intent to partially monetise their holdings without diluting management control.
Recent disclosures suggest SBI may offload approximately 6.3%, while Amundi could sell close to 3.7%, translating into over 5 crore shares being listed, subject to final structuring and regulatory clearances.
From Consideration to Execution
While the appointment of bankers marks a decisive shift toward execution, SBI Funds Management IPO journey has been years in the making. SBI’s top management had repeatedly stated since 2021 that while SBI Mutual Fund and SBI General Insurance were “strong candidates” for listing, market conditions had delayed timelines.
That stance evolved materially in 2025. SBI Chairman C S Setty publicly confirmed that the boards of SBI, Amundi, and SBI Funds Management had approved a 12-month roadmap to tap the capital markets, including banker selection, legal appointments, and draft prospectus preparation.
The current banker mandates suggest the process has now advanced beyond exploratory discussions into active deal preparation.
Scale, Market Leadership, and Financial Strength
SBI Funds Management enters the public markets from a position of considerable strength. As of September 2025, the AMC managed nearly INR 12 lakh crore in assets, commanding a market share of over 15.5%, making it India’s undisputed leader in the mutual fund industry. Its dominance spans equity, debt, hybrid, and ETF segments, supported by the unparalleled distribution reach of State Bank of India.
The fund house has also benefited from India’s deepening SIP culture, rising retail participation, and regulatory-driven financial inclusion initiatives, all of which have structurally expanded the long-term growth runway for asset managers.
Market Backdrop
The timing of SBI AMC IPO is being shaped by an exceptionally strong primary market environment. India was among the world’s busiest IPO markets in 2025, with companies raising over USD 22 billion, surpassing the previous year’s record.
Investor appetite for asset management businesses has been underscored by the recent blockbuster listing of ICICI Prudential Asset Management, which raised INR 10,602.65 crore and saw demand exceeding 39x. That company now trades at a valuation similar to what SBI Funds Management is expected to seek.
Recent listings of Canara Robeco AMC and Groww have further reinforced positive sentiment toward the sector.
Beyond market conditions, the IPO aligns with a broader policy push by the Ministry of Finance urging public sector banks to monetise high-quality subsidiaries. The objective is to unlock value, strengthen balance sheets, enhance governance, and improve capital efficiency.
Outlook
With banker appointments underway and promoter intent clearly articulated, SBI Funds Management IPO has transitioned from concept to execution. If completed as planned, it would rank among the largest IPOs in India’s financial services sector and redefine benchmarks for listed asset managers.
For more details related to IPO GMP, SEBI IPO Approval, and Live Subscription stay tuned to IPO Central.