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SBI Funds Management has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI). The proposed Initial Public Offering (IPO) will be a pure Offer for Sale (OFS) as it consists of a maximum of 20.37 crores equity shares corresponding to approximately 10% equity stake.
The IPO will not involve any fresh issue of shares, which means that the proceeds from the IPO will go straight to the existing shareholders. Promoters, State Bank of India (SBI), and Amundi India Holding will dilute their shareholding as part of the offering.
SBI is expected to offload around 12.83 Crore shares (around 6.3%), and Amundi around 7.53 crore shares (around 3.7%).
Currently, SBI has a majority stake of more than 61%, and Amundi has a stake of about 36%, as this is a longstanding joint venture between the Indian banking giant and the French asset management firm.
SBI Funds Management has retained its standing as the largest mutual fund house in India since 2021. As of December 2025, it had a quarter-on-quarter average assets under management (QAAUM) of nearly Rs. 12.5 lakh crore with a market share of around 15.4%.
The scale of operations puts the company ahead of listed players such as HDFC AMC, ICICI Prudential AMC, Nippon Life India Asset Management, Aditya Birla Sun Life AMC, and UTI AMC.
The financial performance of SBI Funds Management has also been strong in recent years, with profit in the last nine months ended December 2025 rising 25.9% to Rs 2,432.9 crore from Rs 1,933 crore of the same period in the previous year.
The revenue rose 23% to Rs 3,250.6 crore from Rs 2,641.9 crore. Further, in fiscal 2025, the profit was Rs 2,540.2 crore, a growth of 22.5% on the previous year's profit of Rs 2,072.8 crore.
Revenue in the same fiscal year grew 33.7% to Rs 3,597.8 crore from Rs 2,690.6 crore.
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SBI Chairman CS Setty, on earlier occasions, has indicated that the IPO filing is expected to happen by March, with a potential listing expected by September 2026. The boards of SBI, Amundi, and SBI Funds Management have collectively passed a roadmap of 12-months for the listing process.
If successful, SBI Funds Management would be the third subsidiary of SBI to go public on stock exchanges, unlocking further value for shareholders.
Leading investment banks have been selected for managing the IPO, and they include Kotak Mahindra Capital, Axis Capital, BofA Securities India, HSBC Securities, ICICI Securities, Jefferies India, JM Financial, Motilal Oswal, and SBI Capital Markets.
