SBI Mutual Fund IPO gets Sebi's green light; RHP filing expected in July: Report

SBI Funds Management, the asset management arm of SBI Mutual Fund, has reportedly received regulatory clearance from the Securities and Exchange Board of India (Sebi) to proceed with its initial public offering (IPO).

The country's largest mutual fund house is now expected to move ahead with the next phase of the listing process. Industry sources indicated that the company could file its red herring prospectus (RHP) in the first week of July.

SBI Funds Management, a joint venture between State Bank of India (63%) and Europe’s Amundi (37%), had submitted its draft red herring prospectus (DRHP) to Sebi on March 19, 2026. The proposed IPO comprises a pure offer for sale (OFS) of 20.37 crore equity shares, equivalent to a 10% stake in the company, with no fresh issue component.

Under the proposed share sale, SBI is expected to divest around 6.3% of its stake, potentially garnering over ₹8,000 crore, while Amundi may sell 3.7%, which could fetch approximately ₹5,000 crore. Based on industry estimates, the IPO could raise around ₹13,000 crore and value the asset management company between ₹1.3 lakh crore and ₹1.5 lakh crore.

The listing would make SBI Funds Management the third SBI subsidiary to hit the stock market after SBI Life Insurance and SBI Cards & Payment Services.

At the estimated size, the issue would rank among India's largest financial services IPOs. Only a handful of offerings, including Life Insurance Corporation of India's ₹20,557-crore IPO, One97 Communications' ₹18,300-crore issue and Tata Capital's ₹15,511-crore public offering, have raised larger amounts.

The IPO plans were first announced in November last year, when SBI and Amundi said a public listing would provide an opportunity for broader shareholder participation, deepen investor engagement and enhance awareness of the company's investment products.

Established in 1992, SBI Funds Management has grown into one of India's largest asset managers, commanding a market share of more than 15%. The fund house manages assets exceeding ₹28 lakh crore, making it one of the largest asset management companies globally by assets under management (AUM).

The company's business model is highly scalable and largely fee-driven, with revenue closely linked to growth in AUM. Management fees, charged as a percentage of assets managed, form its primary source of income, enabling significant operating leverage as the asset base expands. In recent years, the fund house has also stepped up investments in technology and AI-led capabilities aimed at improving investor engagement, streamlining operations and lowering customer acquisition costs, an increasingly important differentiator in India's rapidly expanding mutual fund industry.

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