SBI Funds IPO Explained: Valuation, Shareholding, Timeline and Key Bankers

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 IPO: Key Highlights

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.

SBI Funds IPO Valuation and Listing Timeline

Expected Valuation

As per a Mint report citing sources, the IPO valuation is estimated at around $12 billion to $14 billion.

Likely Listing Date

• 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.

Shareholding Structure of SBI Funds Management

Promoter and Partner Stakes

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.

How Much Stake Will Be Sold in the IPO?

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.

DRHP Filing and IPO Opening Timeline

Draft Filing Schedule

Sources indicate that the DRHP filing is targeted for the second or third week of February.

IPO Opening Factors

The IPO launch will depend on:

• Market conditions

• SEBI’s regulatory approval

SBI Funds Management: Financial Performance

Assets Under Management (AUM)

• As of December 31, the company had an average AUM of ₹12.5 lakh crore

Profitability

• FY25 net profit: ₹2,531 crore

• FY24 net profit: ₹2,062 crore

This reflects strong year-on-year growth in earnings.

Investment Banks Managing the IPO

Appointed Bookrunners and Advisors

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.

Valuation Debate and Banker Exits

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.

Industry Context and Market Comparison

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.

Why the SBI Funds IPO Matters

• 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