SBI Funds Management Moves Closer to IPO, Eyes 2026 Listing

India’s largest asset manager, SBI Mutual Fund (operated by SBI Funds Management Ltd), is advancing plans for a blockbuster initial public offering (IPO) targeted for 2026. The listing could rank among the country’s largest IPOs in recent years, with the company expected to raise over $1 billion from the sale. The State Bank of India (SBI) and its joint-venture partner Amundi have approved a plan to divest a combined 10% stake through the public offering. SBI is set to sell approximately 6.3%, while Amundi will offload around 3.7% of its holding in the asset management arm, subject to regulatory clearances.

To steer the transaction, SBI Funds Management has appointed a consortium of major investment banks, including Kotak Mahindra Capital, Axis Capital, SBI Capital Markets, Motilal Oswal, ICICI Securities, JM Financial, and the Indian units of Citigroup, HSBC, and Bank of America. These advisors are expected to finalise plans ahead of the proposed 2026 listing.

Market participants suggest the IPO could value SBI Funds Management at around $14 billion, though the final size and valuation remain unconfirmed pending official disclosures.

If completed, the IPO will mark the third major SBI subsidiary to be publicly listed, following SBI Cards and SBI Life Insurance, and will provide retail and institutional investors with the opportunity to participate in the growth of India’s largest mutual fund house.