SBI Mutual Fund IPO: India’s largest mutual fund company SBI Funds Management is preparing to make its debut in the stock market soon. According to the information received, the company is likely to file a draft document (Draft Red Herring Prospectus) for its IPO by mid-February or by the third week.

The company intends to open the IPO in April, the process will depend on market conditions and SEBI approval.

SBI Funds Management is a joint venture between State Bank of India (SBI) and Amundi, a leading French asset management company.

In the proposed IPO, SBI will sell 6.3 per cent stake and Amundi 3.7 per cent stake, and the total 10 per cent stake will come to the market through Offer for Sale (OFS). It is clear that there is no new capital raising proposal from this IPO.

Looking at the financial position of the company, SBI Funds Management had assets under management (AUM) of Rs 12.5 lakh crore as at the end of December 31, 2025. In FY2025, the company has earned a net profit of Rs 2,531 crore.

According to investment bankers’ estimates, the company’s valuation could be between $12 billion and $14 billion, while the IPO size is likely to be between $1.2 billion and $1.4 billion.

A total of nine banks including SBI Capital Markets, Kotak Mahindra Capital, Axis Bank have been appointed for the management of this IPO.

Initially, global banks such as Citigroup and JP Morgan pulled out of the process due to disagreements over fees. The final assessment will be determined at the time of submission of the draft document.

Meanwhile, the Indian IPO market is currently booming with 103 companies raising Rs 1.76 lakh crore in 2025. After the successful listing of ICICI Prudential Asset Management and Canara Robeco Asset Management, SBI Funds Management’s IPO is expected to be a special attraction for investors.