SBI Funds Management has started taking steps towards finalising public listing planned in 2026, in a deal that could rank among India’s largest IPOs in recent times. The country’s biggest asset manager is expected to raise over $1 billion through the issue, with promoters set to trim their holdings, according to a mix of regulatory filings and media reports.
According to Bloomberg, SBI Funds Management has appointed nine banks to advise on the proposed initial public offering, which may raise around $1.4 billion in the first half of 2026. The bankers include Kotak Mahindra Capital, Axis Capital, SBI Capital Markets, Motilal Oswal Investment Advisors, ICICI Securities ,and JM Financial, along with Indian units of Citigroup, HSBC. , and Bank of America.
Bloomberg quoted its sources and stated that the appointments are expected to be formalised shortly and that the IPO could value the company at about $14 billion. The discussions are ongoing, and the final size and valuation of the offering could still change. State Bank of India, Amundi, SBI Funds Managemen,t and the banks declined to comment, as per Bloomberg.
There is no official announcement on this still, just to remind our readers.
SBI and Amundi to sell stakes; listing targeted for 2026
The IPO plans follow a formal decision by SBI to reduce its holding in the asset management arm. On November 6, SBI said in an exchange filing that its board had approved the sale of a 6.3 percent stake, amounting to 3.206 crore shares, subject to regulatory approvals.
Amundi India, the French group’s local arm, is also expected to sell about 3.7 percent of its stake, or roughly 18.83 million shares, SBI disclosed. The IPO is being jointly initiated by SBI and Amundi India and is targeted for completion in 2026.
SBI currently owns 61.9 percent of SBI Funds Management, while Amundi holds 36.36 percent. In FY25, SBI earned Rs 4,230.92 crore in income from its stake in the company.
SBI Funds Management is the largest asset management company in the country, with a market share of about 15.55 percent. It managed assets worth Rs 16.32 trillion as of the end of the September quarter, catering to both retail and institutional clients.
How will the issue trade?
If completed, the listing will be the third major subsidiary of SBI to be traded publicly, following SBI Life Insurance and SBI Cards. The proposed offering comes after a strong market debut by ICICI Prudential Asset Management, which raised about $1.2 billion in its IPO last month and is currently valued at around $14 billion.
Following a record-breaking 2025, the Indian primary market is entering 2026 with a massive pipeline of public issues. According to the latest analysis by Prime Database Group, the momentum from last year, which saw mainboard IPOs hit an all-time high of Rs 1,75,901 crore is set to accelerate further. An assessment of Sebi filings, exchange disclosures and data compiled by Prime Database Group shows companies targeting close to Rs 2.5 lakh crore through mainboard IPOs over the coming quarters, as earlier reported by Financial Express.