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Preparations for the IPO of one of the biggest asset management companies in India. SBI Funds Management Ltd, the investment manager of SBI Mutual Fund, has shortlisted nine merchant bankers to manage its upcoming public issue, according to details available with ET NOW.
The proposed IPO is expected to raise around Rs 12,500 crore, positioning it among the largest listings ever from India’s mutual fund industry.
Nine Bankers Appointed.
Sources say the company has appointed nine Book Running Lead Managers (BRLMs) for the issue: Axis Bank, Bank of America (BofA), Citi, HSBC, ICICI Securities, SBI Capital Markets, JM Financial, Kotak Mahindra Capital, and Motilal Oswal.
In the IPO process, BRLM plays a major role. They coordinate regulatory approvals, manage investor outreach, oversee book building and help determine the final pricing and structure of the issue. The presence of a mix of global and domestic investment banks signals a large, institutionally driven offering with broad investor interest expected.
IPO Filing and listing duration
As per sources, SBI Funds Management is likely to file its draft red herring prospectus (DRHP) with SEBI and stock exchanges in Q4 FY26. If the process moves as planned, the IPO could reach Dalal Street in the first half of 2026.
This timeline fits with earlier commentary from C.S. Setty, Chairman of State Bank of India, who had confirmed in December 2025 that SBI Bank aims to complete the listing of SBI Mutual Fund within the next 12 months. He also made it clear that SBI is not planning any other IPOs or stake sales during this period.
Ownership structure and business scale
SBI Funds Management is jointly owned by State Bank of India, which holds around 62% and French asset management major Amundi, with nearly 36% stake.
The fund house offers a diversified investment product across equity, debt, hybrid and alternative investment funds, catering to both retail and institutional investors. Currently, it manages assets worth approximately Rs 12 lakh crore, underlining its scale and leadership in the Indian mutual fund industry.
Read more here: SBI Funds IPO: Management Begins The Process
SBI Mutual: A legacy player in Indian mutual funds
SBI Mutual Fund was set up in 1987, with SBI as the sponsor, making it the first non-UTI mutual fund in India. In 1992, SBI Funds Management Limited was incorporated as a wholly owned subsidiary of SBI to act as the investment manager.
Over the decades, the fund house has grown alongside India’s expanding capital markets and rising household participation in financial assets.
That said, while regulatory and preparatory steps are clearly progressing, key details such as valuation and exact timelines will be closely watched as the process unfolds.
Why does this IPO matter?
At a basic level, a listing of SBI Funds Management would give investors exposure to a fee-based and asset-light business. Mutual fund companies earn by managing money, not by lending it. As more Indians invest in mutual funds and assets under management (AUM) grow, earnings for such companies tend to rise over time.
A major strength is the SBI brand. Being backed by India’s largest bank gives SBI Mutual Fund a strong trust factor and one of the widest distribution networks in the country. This helps in attracting steady investor inflows and maintaining a strong position against private fund houses.
The IPO will also be compared with listed peers such as HDFC Asset Management, Nippon Life India Asset Management and UTI Asset Management. Valuation will be key in deciding how attractive the issue looks. For investors, the listing adds another large and liquid financial stock and offers diversification beyond banks. However, returns will still depend on market conditions, investor sentiment and regulatory changes.
Overall, the SBI Mutual Fund IPO brings a strong, established franchise to the market, with long-term potential tied to India’s growing investment culture.
Can You Invest In SBI Mutual Funds Before IPO?
SBI Mutual Fund is not listed, but still trades in the unlisted market. You can buy SBI Mutual Funds Unlisted Shares with brokers like Stockify and tap into such pre-ipo investment opportunities.
