SBI Funds Management Begins IPO Preparations, Listing Planned for 2026

SBI Funds Management, India’s largest asset management company, has started taking steps towards a public listing planned for 2026. The proposed initial public offering (IPO) could be among the biggest in India in recent years, with expectations of raising over US$1 billion. However, it is important to note that there has been no official announcement yet, and plans may still evolve.

Major IPO Preparations Underway

News reports suggest that SBI Funds Management has appointed nine investment banks to advise on the proposed IPO. The issue is expected to take place in the first half of 2026 and could raise around US$1.4 billion. If completed at the current estimates, the listing may value the company at close to US$14 billion.

Discussions around the IPO are ongoing, and the final issue size and valuation may change depending on market conditions and regulatory approvals. At this stage, the preparations indicate intent, but the offering is yet to be formally confirmed.

Promoters to Reduce Stake

The IPO follows a decision by State Bank of India (SBI) to reduce its holding in the asset management arm. In November, SBI’s board approved the sale of a 6.3% stake, subject to regulatory clearances. This stake sale will form part of the IPO process.

Amundi India, the Indian arm of the French asset management group Amundi, is also expected to sell around 3.7% of its stake through the offering. The IPO is being jointly initiated by SBI and Amundi, with completion targeted in 2026.

Currently, SBI holds 61.9% of SBI Funds Management, while Amundi owns 36.36%. The remaining stake is held by others. In FY25, SBI earned over ₹4,200 crore in income from its investment in the asset management company.

India’s Largest Asset Manager

SBI Funds Management is the country’s biggest mutual fund house, with a market share of about 15.55%. As of the end of the September quarter, it managed assets worth ₹16.32 trillion. The company serves a wide base of retail and institutional investors across equity, debt, and hybrid products.

If listed, SBI Funds Management would become the third major SBI subsidiary to trade on the stock exchanges, after SBI Life Insurance and SBI Cards.

Strong IPO Market Supports Timing

The planned listing comes at a time when India’s primary market remains strong. After a record-breaking 2025, the IPO pipeline for 2026 looks robust, with companies aiming to raise nearly ₹2.5 lakh crore through mainboard offerings in the coming quarters. Recent successful listings in the asset management space have further supported investor confidence.

Read more: Top SIP Stocks for January 2026: Hindalco, BEL, NTPC, and Others Based on 5Y CAGR and D/E Ratio.

Conclusion

SBI Funds Management’s IPO plans mark a significant step in India’s capital markets. While the offering is still subject to approvals and final decisions, the size, scale, and market position of the company make it one of the most closely watched listings planned for 2026.

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