SBI Funds Management, India’s largest asset management company, is preparing to enter the stock market with a major initial public offering (IPO). Market sources indicate that the company could raise up to ₹12,820 crore, making it one of the biggest IPOs in the Indian financial services space in recent years.
SBI Funds Management is set to launch its much-anticipated IPO as part of regulatory compliance and long-term growth plans. According to market sources, the company is fully prepared to file its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) by mid-February.
The IPO size is expected to range between $1.2 billion and $1.4 billion, translating to approximately ₹10,990–₹12,820 crore in Indian currency.
As per a Mint report citing sources, the IPO valuation is estimated at around $12 billion to $14 billion.
DRHP filing: February (mid-month expected)
IPO listing: Likely by April, subject to SEBI approval and market conditions
SEBI approval typically takes two to three months, which aligns with the expected listing timeline.
SBI Funds Management is a joint venture between:
State Bank of India (SBI) – 61.9% stake
Amundi (France) – 36.4% stake
The remaining shares are held by employees and other investors.
In November, SBI and Amundi announced plans for a public listing in 2026. Under the proposed IPO:
SBI will sell 6.3% stake
Amundi will sell 3.7% stake
This means 10% of the company’s equity will be offered to the public. The stake sale is primarily aimed at meeting regulatory requirements.
Sources indicate that the DRHP filing is targeted for the second or third week of February.
The IPO launch will depend on:
Market conditions
SEBI’s regulatory approval
As of December 31, the company had an average AUM of ₹12.5 lakh crore
FY25 net profit: ₹2,531 crore
FY24 net profit: ₹2,062 crore
This reflects strong year-on-year growth in earnings.
According to reports, SBI Funds Management has appointed leading domestic and global banks for IPO management, including:
SBI Capital Markets
Kotak Mahindra Capital
Axis Bank
ICICI Securities
JM Financial
Motilal Oswal
Bank of America
HSBC
Jefferies
Different bankers have proposed varying valuations, with the final valuation expected to be decided closer to the DRHP filing.
Some reports suggest differences between the company and certain bankers regarding IPO pricing. According to Bloomberg, a few major Wall Street banks exited the deal due to disagreements over fees.
Despite these developments, the SBI Funds IPO is expected to attract significant investor interest.
Recently, ICICI Prudential Asset Management launched a $1.2 billion IPO, following which its valuation crossed $14 billion. This has strengthened expectations for strong demand and valuation for the SBI Funds Management IPO.
Largest asset management company in India
One of the biggest financial services IPOs in recent years
Strong profitability and growing AUM
Backed by SBI and global asset manager Amundi