State Bank of India (SBI) on Wednesday said its asset management joint venture, SBI Funds Management (SBIFM), has filed the red herring prospectus (RHP) for its proposed initial public offering (IPO).
According to SBI’s regulatory filing, the IPO is entirely an offer for sale (OFS) of up to 203.71 million equity shares, representing up to 10% of SBIFM’s paid-up equity share capital.
Under the OFS, State Bank of India will divest up to 128.33 million equity shares, equivalent to a 6% stake in SBIFM, while joint venture partner Amundi India Holding will sell up to 75.37 million equity shares, representing a 3.70% stake.
As the issue is entirely an OFS, SBI Funds Management will not receive any proceeds from the public offering, with the entire amount going to the selling shareholders.
The IPO is subject to receipt of the necessary regulatory approvals, prevailing market conditions, and other customary considerations. The public issue will open for subscription on Tuesday, July 14, 2026, and close on Thursday, July 16, 2026.
The price band, lot size, and other details of the IPO, including the issue size, are expected to be announced in due course.
For FY26, SBIFM generated a total income of ₹4,969 crore, which is equal to 0.70% of the total income of the SBI Group.
The anchor investor portion will open for bidding on Monday, July 13, one working day ahead of the public issue. Meanwhile, the qualified institutional buyers (QIB) portion will close on Wednesday, July 15, a day before the issue closes for other investor categories.
Established in 1992, SBI Funds Management, which manages the well-known SBI Mutual Fund, is the country’s largest asset management company (AMC), based on assets under management (AUM). It is a joint venture between State Bank of India and Amundi.
Meanwhile, the IPO market has regained momentum in recent weeks after a muted start to 2026. In June alone, 22 companies, including SMEs, debuted on the stock exchanges, while another 16 companies have already been listed, signalling a revival in primary market activity and healthy investor demand.
According to Trendlyne data, 151 companies were listed during the first seven months of 2025, while the corresponding figure for 2026 currently stands at 121.
IPO to expand the universe of listed asset management companies
Upon listing, SBI Funds Management will join listed asset management peers such as HDFC Asset Management Company and ICICI Prudential Asset Management Company.
ICICI Prudential AMC, a subsidiary of ICICI Bank, made its stock market debut in December last year, listing at ₹280.25 apiece on the BSE—a 5.4% premium over its IPO price of ₹266 per share.
Disclaimer: We advise investors to check with certified experts before making any investment decisions.
