SBI Mutual Fund IPO to Launch in 2026, Says Chairman CS SettySBI-mutual-fund-IPO.jpg

As per The Economic Times report, SBI Chairman CS Setty has confirmed that the initial public offering (IPO) of SBI Mutual Fund is on track to be completed within the next 12 months, marking a significant step in the public listing of India’s largest fund house.  

The proposed offering will involve a 10% stake sale from its promoters, State Bank of India and Amundi. 

SBI Mutual Fund IPO Timeline and Stake Sale Details 

During an interaction on December 22, 2025, CS Setty stated that the IPO for SBI Mutual Fund is expected to be completed by 2026. SBI and Amundi, the joint promoters of SBI Fund Management Ltd, aim to offload a total of 10% stake.  

This includes SBI selling 3,20,60,000 equity shares, equivalent to 6.3% of total equity. Amundi India Holding will sell 1,88,30,000 shares, or 3.7%, leading to a total of 5,08,90,000 equity shares in the offering. 

The company has initiated the selection process for merchant bankers and other intermediaries needed to facilitate the listing. Approval for the proposal has already been obtained from both promoters and the board of SBI Funds Management Ltd. 

SBI’s Capital Position and IPO Plans 

CS Setty stated that SBI is not looking to raise fresh capital for the next 5 years. With a capital-to-risk-weighted assets ratio (CRAR) of 15% and a common equity Tier 1 (CET1) ratio of 12%, the bank is positioned to support ₹12,00,000 crore to ₹13,00,000 crore in credit growth without requiring equity dilution. The expected proceeds from the mutual fund IPO will not be needed for capital expansion. 

SBI’s profit stands between ₹70,000 crore and ₹80,000 crore annually. The bank estimates that these internal accruals are sufficient to sustain credit growth even under the new expected credit loss (ECL) norms. 

Read More: Top SBI Mutual Funds Turn ₹10,000 SIP into up to ₹1.83 Crore in 20 Years! 

Market Perspective and Government Representation 

Commenting on the broader market, Setty highlighted the need for more diversified companies to be available for investment. He mentioned that investors often end up investing repeatedly in a limited set of listed firms.  

Regarding foreign institutional investor (FII) limits in public sector banks, Setty added that higher limits offer more headroom, which supports long-term investor interest, even when existing limits are not fully utilised. 

Conclusion 

SBI Mutual Fund’s IPO is planned for completion by 2026, involving a joint 10% stake sale by SBI and Amundi. SBI has confirmed that it does not require additional equity funding in the next 5 years due to solid capital ratios and consistent profitability, reinforcing its strength in managing future credit growth independently of the IPO funds. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in Securities Markets are subject to market risks, read all scheme-related documents carefully.