India’s biggest asset management company, SBI Funds Management, has taken a significant step toward going public by filing its draft papers with Securities and Exchange Board of India. The proposed IPO, structured entirely as an offer for sale, is expected to enhance the company’s market visibility while offering investors a chance to participate in the country’s rapidly growing mutual fund industry.
SBI Funds Management has officially filed its Draft Red Herring Prospectus (DRHP) with SEBI, marking the beginning of its journey toward a public listing. The IPO will consist entirely of an offer for sale (OFS) of approximately 20.37 crore equity shares.
The shares will be sold by the company’s existing promoters:
State Bank of India
Amundi
Since the issue is purely an OFS, the company itself will not receive any proceeds from the IPO. Instead, the transaction will allow promoters to partially monetize their holdings.
The company has stated that the listing will help improve its brand recognition, increase transparency, and provide liquidity to its shareholders.
SBI Funds Management operates as a joint venture between State Bank of India and Amundi, one of the world’s leading asset managers.
SBI currently holds a 61.98% stake
Amundi India Holding owns 36.40%
This partnership combines SBI’s extensive domestic reach with Amundi’s global expertise in asset management, making it one of the strongest collaborations in India’s financial services sector.
SBI Funds Management stands as the largest asset management company in India based on assets under management (AUM). As of December 2025, the company reported a quarterly average AUM (QAAUM) of nearly ₹12.5 lakh crore.
This translates to a market share of approximately 15.4% in India’s mutual fund industry, reflecting its dominant position.
The company’s scale is further highlighted by its leadership in passive investment products:
Passive AUM: ₹3.99 lakh crore
Market share in passive segment: 29.6%
This makes it the largest player in exchange-traded funds (ETFs) and index funds in the country.
SBI Funds Management offers a wide range of investment solutions across multiple asset classes. Its portfolio includes 126 mutual fund schemes spanning:
Equity and equity-oriented funds
Debt funds
Arbitrage funds
Exchange-traded funds (ETFs)
Index funds
Overseas fund-of-funds
Liquid and overnight schemes
The company serves a vast investor base of over 16 million unique investors, including both retail and institutional clients. This extensive reach has been a key driver of its sustained growth over the years.
Established in 1987, SBI Mutual Fund—sponsored by SBI—was the first non-UTI mutual fund in India. Over the decades, it has played a pivotal role in shaping the country’s mutual fund landscape.
Its long-standing presence, combined with consistent performance and innovation, has helped it maintain a leadership position in the industry.
The company’s strong distribution network, backed by SBI’s nationwide presence, provides a significant competitive advantage.
According to earlier indications from SBI Chairman Challa Sreenivasulu Setty, the company is targeting a potential market debut around September, subject to regulatory approvals and market conditions.
The IPO is expected to attract significant investor interest, given the company’s scale, profitability, and leadership in the mutual fund space.
Once listed, SBI Funds Management will join a group of publicly traded asset management companies in India, including:
HDFC Asset Management Company
Nippon Life India Asset Management
Aditya Birla Sun Life AMC
UTI Asset Management Company
ICICI Prudential Asset Management Company
However, SBI Funds Management’s larger AUM and market share could give it a distinct edge over its peers.
The IPO will be managed by a consortium of leading financial institutions acting as book-running lead managers. These include:
Kotak Mahindra Capital
BofA Securities India
Axis Capital
ICICI Securities
Jefferies India
JM Financial
HSBC Securities and Capital Markets (India)
SBI Capital Markets
Motilal Oswal Investment Advisors
KFin Technologies has been appointed as the registrar for the issue.
The IPO of SBI Funds Management is expected to be a landmark event for India’s financial markets. It comes at a time when:
Retail participation in mutual funds is increasing
Systematic Investment Plans (SIPs) are gaining popularity
Financial literacy is improving across the country
The listing could further boost investor confidence in the asset management sector and encourage more participation in capital markets.
Looking ahead, SBI Funds Management is well-positioned to benefit from several structural trends:
Rising disposable incomes
Increasing shift from traditional savings to financial assets
Growth in passive investing
Expansion of digital investment platforms
The company’s strong brand, extensive distribution network, and diversified product offerings are likely to support its long-term growth.
Conclusion
The filing of the DRHP by SBI Funds Management marks a crucial step toward what could become one of the most significant IPOs in India’s financial sector. While the offer is entirely an exit route for existing shareholders, the listing is expected to enhance the company’s market presence and unlock value for investors. As India’s mutual fund industry continues to expand, SBI Funds Management’s public debut could set new benchmarks for the asset management space.