State Bank of India (SBI) has initiated the listing process for its asset management subsidiary, SBI Funds Management Limited. The bank filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) on March 19, 2026.
The proposed IPO is expected to be completed by September 2026, subject to regulatory approvals. The listing marks a significant development in India’s mutual fund industry, given the scale of SBI Mutual Fund’s operations.
The proposed IPO is entirely an offer for sale, with no fresh issue component, meaning proceeds will go to existing shareholders. The issue involves the sale of up to 20.37 crore equity shares.
State Bank of India plans to divest a 6.3% stake amounting to around 12.83 crore shares. Amundi India Holding will sell a 3.7% stake, equivalent to approximately 7.54 crore shares.
Market estimates indicate that the IPO could raise approximately ₹13,000 crore. Based on current projections, the valuation of SBI Funds Management is expected to range between ₹1.3 lakh crore and ₹1.5 lakh crore.
This positions the offering among the larger IPOs in India’s financial services sector. The absence of a fresh issue suggests that the company’s capital position remains stable and that the listing is primarily aimed at unlocking shareholder value.
SBI Mutual Fund holds a leading position in India’s asset management industry. As of December 2025, it reported Assets Under Management (AUM) of approximately ₹12.5 lakh crore.
The company commands a market share of 15.4%, making it the largest asset management company in India. The company benefits from its association with SBI, which provides extensive reach and customer access.
SBI Funds Management has reported steady financial growth, with profit rising 26% for the nine months ended December 2025. The company recorded revenue of ₹32.51 billion and profit of ₹24.32 billion during the period.
It filed its DRHP on March 19, 2026, with SEBI approval expected between May and June and a target listing by September 2026. The IPO is being managed by Kotak Mahindra Capital, Axis Capital and BofA Securities.
Read More: SBI Mutual Fund Portfolio Update.
The proposed IPO of SBI Funds Management represents a significant milestone in the Indian asset management sector. Structured entirely as an OFS, the offering enables existing shareholders to partially divest their stakes. The company’s strong market position, large investor base, and consistent financial performance underpin the offering. The listing, targeted by September 2026, will be closely tracked given its scale and sector relevance.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/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 the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Mar 23, 2026, 2:51 PM IST
Akshay Shivalkar
Akshay Shivalkar is a financial content specialist who strategises and creates SEO-optimised content on the stock market, mutual funds, and other investment products. With experience in fintech and mutual funds, he simplifies complex financial concepts to help investors make informed decisions through his writing.
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