SBI Funds' planned IPO could raise about $1.5 billion and value the asset manager near $15 billion — putting it among India's largest mutual‑fund listings and a potential bellwether for other financial-sector flotations. Jointly owned by State Bank of India and Amundi, the firm is assembling advisers and may submit draft papers in early March ahead of a 2026 listing, with shareholders expected to sell roughly 10% of the company.

Deal mechanics and size SBI Funds Management Ltd is targeting a sizeable public offering with proceeds of up to $1.5 billion, sources close to the process have told the business press. The shareholders — State Bank of India and Amundi SA — intend to sell about 10% of the asset manager through the offering, a move that would put a multi-billion dollar price tag on one of India's largest mutual fund houses. The $1.5 billion figure has been widely reported in Indian financial media. Reported conversions put that sum at about ₹13,500 crore; prospective valuation targets cited in coverage have ranged up to roughly $15 billion, depending on the structure and pricing of the sale. The size would make the IPO one of the biggest by an asset manager in India. ICICI Prudential Asset Management Co. remains the largest publicly traded Indian AMC by market capitalisation after its late-2025 listing, with coverage putting its post-listing valuation above $16 billion. SBI Funds' target valuation would sit slightly below that level. Timeline and corporate backing State Bank of India holds a majority stake in SBI Funds, while Europe’s Amundi owns a substantial minority share. C S Setty, SBI Chairman and chairman of SBI Funds Management, has publicly confirmed the boards approved a 12-month timeline for an offering and said the group had begun appointing advisers. “We are very seriously working on that, and in this timeline we should hit the market…we have started the process of identifying the merchant bankers and other service providers,” C S Setty, SBI Chairman, said in a recent interview. Several reports state SBI Funds may file a draft red herring prospectus in early March. The filings could change in scale and timing as market conditions and investor appetite evolve, and the company and its shareholders have options on how and when to push the transaction forward. Advisers and positioning Coverage has named a number of banks and brokers involved or likely to be involved in the offering. Reported appointments include: - Kotak Mahindra Capital - Axis Bank - SBI Capital Markets - Motilal Oswal - ICICI Securities - JM Financial - Local units of HSBC, Jefferies and Bank of America Those appointments, if final, would give SBI Funds wide distribution reach across domestic and international investor bases. Institutional placement and a retail tranche would both be doable elements of the structure, and past large Indian IPOs by financial firms have used a mix of anchor investors, institutional bookbuilds and retail allocations. Assets under management and sector context SBI Funds is India’s largest mutual fund house by assets under management. Sources have placed its AUM at about ₹12 lakh crore as of September 2025 and at roughly ₹12.5 trillion in other press coverage; the figures are broadly consistent and underline the company's scale. The house was the first in India to cross the ₹10 lakh crore AUM milestone. The asset management sector has delivered strong returns to investors in the past year, and AMC stocks have attracted attention as retail participation and savings rates shift away from cash and into financial markets.

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SBI Funds may file a draft red herring prospectus in early March as it targets a 2026 listing. “We are very seriously working on that, and in this timeline we should hit the market,” C S Setty, SBI Chairman, said.

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