In what is set to be the biggest D-street launch of 2026 so far, SBI Funds Management Ltd filed its red herring prospectus late on Wednesday for an initial public offering worth up to ₹11,693 crore.
The price band for the equity shares is set at ₹545-574 a share, an announcement in local newspapers showed. Prior to the price band announcement, SBI Funds shares traded at approximately ₹830 apiece in the unlisted market.
The asset manager, a subsidiary of State Bank of India (SBI), will open its public issue for subscription on 14 July. At the upper end of the price band, the company will command a market capitalization of nearly ₹1.17 trillion.
The IPO allotment is expected to be finalized on 18 July, while the stock will list on both National Stock Exchange and BSE on 21 July.
The IPO will consist entirely of an offer for sale by its promoter shareholders. SBI will sell up to 128.3 million shares, representing a 6.3% stake, while joint venture partner Amundi India Holding will sell up to 75.6 million shares, equivalent to a 3.7% stake. Together, SBI and Amundi currently hold around 98% of SBI Funds Management.
Before June 2011, Amundi India Holding’s stake was held by Société Générale SA.
Mega IPO
SBI Mutual Funds’ IPO will be the first billion-dollar-plus launch this calendar year. After a slow start, multiple large IPOs were filed in June as tensions in West Asia seemed to settle. However, US President Donald Trump’s comments on Wednesday, declaring an end to the ceasefire with Iran, have shaken secondary market sentiment in India, with the Sensex and the Nifty plunging over 2% on Wednesday to log their worst single-day fall since March-end.
“Markets will always be uncertain, but the trust in our company will always be there,” said Debasish Mishra, the newly appointed managing director and chief executive of the fund manager. “Even if market conditions were worse than the current situation, our launch timeline would not have been affected.”
Mishra, who was deputy managing director at SBI, took over at SBI Funds last week after his predecessor, Nand Kishore, superannuated.
“My joining as CEO at the time of IPO is a natural coincidence,” Mishra told Mint, adding that his appointment is unlikely to change the company’s strategy as it becomes a listed entity. “The company already has internal targets set according to a five-year plan for the 2025-30 period. Even after the IPO, we will continue focusing on good governance, value creation and customer centricity.”
The IPO will mark the culmination of a year-long process that began in August 2025, with SBI chairman C.S. Setty saying that SBI General Insurance and SBI Mutual Fund were under consideration for public listing. At that time, he had not given any specific timeline or valuations for the IPOs.
Established in 1992, the company offers financial services including mutual funds, portfolio management services, offshore funds, alternative investment funds and offerings through GIFT City. It is now planning on expanding its product offerings and investment solutions, including passive and alternative offerings, said executive president Srinivas Jain.
“We are launching new capabilities in category-II and category-III AIFs and will also scale our private equity capability soon. It all depends on building the right talent pool, which might be via routes like acquisition-hirings or joint ventures,” he added.
Industry leader
SBI Funds serves 18 million unique investors in the mutual fund business and manages a portfolio of 128 mutual fund schemes, according to its 2026 annual report.
It is the largest asset manager in India, with over ₹29 trillion in assets across its businesses. Its mutual fund average assets under management exceed ₹12.48 trillion with a market share of 15.31% as of March.
In fiscal 2026, it reported a revenue from operations of ₹4,390 crore, up 22% from the previous fiscal year’s ₹3,598 crore. Profit grew 21% to ₹3,067 crore from ₹2,540 crore over the same period. In FY24, the firm reported a profit of ₹2,073 crore on revenue of ₹2,691 crore.
While the joint venture heads towards a listing, it is also looking to raise around ₹1,500 crore from major institutional and sovereign investors, three people aware of the matter told Mint.
The book-running lead managers to the IPO are Kotak Mahindra Capital Company, Axis Capital, BofA Securities India, HSBC Securities and Capital Markets (India), ICICI Securities, Jefferies India, JM Financial, Motilal Oswal Investment Advisors and SBI Capital Markets.
