SBI Funds Management Limited, also known as SBI Mutual Fund, is set to market its much-awaited IPO to raise upto $1.5 Billion. Sources close to the matter confirmed the same. In this blog, we will take a look at the following:

1. SBI MF IPO Structuring

2. DRHP Review & Expected Timeline

3. SBI Fund IPO Valuation Target

4. How Do Groww and HDFC AMC Affect SBI MF Valuation?

5. AUM, Financials, and Growth Stats

6. Risks In SBI Mutual Fund IPO
   

SBI Fund Is Structuring the Offering

India’s 3rd largest asset management company, SBI Fund, is discussing with its bankers about the structure of the offering. The AMC is looking to sell 75% of its shares to domestic investors and is planning to raise $350 million.

SBI Fund IPO DRHP Review and Expected Timeline

SBI Mutual Fund filed its DRHP with SEBI on March 19. The prospectus is an offer for sale (OFS) with an issue size of Rs 13,000 crore, with 35% reserved for retail investors. This DRHP is tentatively expected to be approved in April or May 2026.

SBI Mutual Fund IPO Target Valuation

The AMC is targeting a valuation of $13 billion to $15 billion. If we see a competitor, ICICI Prudential Asset Management stands at $17.6 billion after its $1.2 Billion IPO listing. 

Groww and HDFC AMC as precedents, what do they signal for SBI Mutual Fund?

Jeffries has recently given a bullish call to AMCs like Groww and HDFC. While this can nudge the expectations around the SBI Mutual Fund IPO, the real valuation will be done on the basis of SBI Fund Management’s own AUM growth, margins, and deal structure.

This competitor upgrade can help SBI Mutual fund can makes it valuation easier to defend because it is India’s largest AMC by quarterly average AUM at Rs 12.5 trillion, but this is not a major factor in SBI Mutual Fund's valuation. 

SBI AMC AUM, Financials, and Growth Stats

A) SBI MF AUM Growth Trends:

SBI Mutual Fund has grown from having Rs 5 lakh crore in Assets Under Management (AUM) to having Rs 10.7 lakh crore in FY25. This is a massive growth at a CAGR of 23.5% in 5 years.

B) SIP Trigger Book Growth:

The growth from SIP triggers worth Rs 1,118 cr in FY21 to triggers worth 3,252 crore in FY25, which is a 3x growth in 5 years.

C) Income Growth:

SBI AMC has grown its total income from Rs 1,617 cr to Rs 4,232 cr in FY 25. This is a 2.6 times jump in income in 5 years, showing steady growth.

D)PAT Growth:

In FY21, SBI Mutual Fund earned Rs 860 cr in PAT (profit after tax). This went to Rs 2,531 crore in FY25. This is an almost 3X growth in 5 years.

SBI Funds IPO Structure

SBI Mutual Fund IPO is an Offer for Sale (OFS), allowing existing shareholders to partially monetise their holdings rather than raising fresh capital. The company behind the IPO, SBI Funds Management Ltd, is jointly owned by State Bank of India and Amundi.

Here’s how they are selling their stake:

After the OFS, SBI retains majority ownership and still maintains its dominant institutional position in the company.

Read More Here: SBI Mutual Fund IPO DRHP Filed: ₹13,000 Cr Guide 2026 

Risks In SBI Mutual Fund IPO

A) Market Conditions

With recent global geopolitical shocks and plateaued stock market indexes, investors may be shying away from applying IPO in these uncertain conditions. But the share market’s broad recovery is improving IPO sentiments (Sensex at 24,576, Nifty's 4th weekly gain)

B) OFS-Only Structure 

The SBI MF IPO issue is a completely offer for sale and raises no growth capital, so the fund will not get fresh funds for expansion or acquisitions.

C) Regulatory Fees Pressure

SEBI’s 2026 mutual fund regulation changes and lower fee caps can compress AMC margins over time, adding a profitability risk to the business.

SBI Mutual Fund Unlisted Share Gives 21% Return In 1 Year

The SBI Mutual Fund unlisted shares have grown by 21% from Rs 644 in April 25 to Rs 782 by April 26. In the last 3 years, revenue grew at a healthy compound annual growth rate (CAGR) of around 33% between FY 2023 and FY 2025, while profits nearly doubled in the same period. Thus making it an attractive investment in the eyes of investors.

Also Read: How SBI AMC Share Price Grew 2.5 Times In 2 Years?

FAQ

What is SBI Mutual Fund unlisted share price today?
Currently, as on 27th April 2026, the SBI Mutual Share Unlisted Share price is trading at Rs 782 per share.

When will SBI Mutual Fund IPO open for subscription?

SBI Mutual Fund has filed for its Draft Red Herring Prospectus (DRHP), which can get approved in April-May 26. By this process, we can expect SBI Mutual Fund IPO by September 2026.

What is SBI FM's target IPO valuation?

SBI Mutual Funds is targeting an IPO valuation of $13 billion to $15 billion.