SBI Mutual Fund IPO likely to open on July 14; issue size pegged at around ₹13,500 crore
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SBI Funds Management, the asset management arm of SBI Mutual Fund, is set to launch its much-awaited initial public offering (IPO) on July 14, with the price band likely to be announced on July 9, industry sources told Fortune India.
The IPO is expected to be around ₹13,500 crore (about $1.2 billion) and will comprise an entirely offer for sale (OFS) of 20.37 crore equity shares, with no fresh issue component. The details are expected to be disclosed on July 9.
The asset management company received regulatory clearance from the Securities and Exchange Board of India (Sebi) last month. SBI Funds Management, a joint venture between State Bank of India (63%) and Europe's Amundi (37%), had filed its draft red herring prospectus (DRHP) with Sebi on March 19, 2026.
Under the proposed share sale, SBI is expected to divest around 6.3% of its stake, potentially raising more than ₹8,000 crore, while Amundi is likely to offload 3.7%, which could fetch nearly ₹5,000 crore. Based on industry estimates, the IPO is expected to value the asset management company between ₹1.3 lakh crore and ₹1.5 lakh crore.
The listing will make SBI Funds Management the third listed subsidiary of SBI after SBI Life Insurance and SBI Cards & Payment Services.
At an estimated size of ₹13,500 crore, the offering would rank among the largest financial services IPOs in India. Only a handful of public issues, including Life Insurance Corporation of India's ₹20,557-crore IPO, One97 Communications' ₹18,300-crore offering and Tata Capital's ₹15,511-crore issue, have raised more capital.
SBI and Amundi had first announced plans to list the asset management company in November last year, saying a public listing would broaden shareholder participation, deepen investor engagement and strengthen awareness of the company's investment offerings.
Established in 1992, SBI Funds Management has grown into one of India's largest asset managers, with a market share of over 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).
Its business model is largely fee-based and highly scalable, with management fees linked to growth in AUM serving as the primary revenue driver. This enables significant operating leverage as assets expand. In recent years, the company has also invested in technology and AI-led capabilities to improve investor engagement, streamline operations and reduce customer acquisition costs, strengthening its competitive position amid rapid growth in India's mutual fund industry.
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