India’s largest mutual fund company, SBI Funds Management, is likely to file its draft prospectus for its initial public offering (IPO) by mid-February. The company is expected to be listed in the stock market by April. SBI Funds Management is a joint venture between State Bank of India (SBI) and French asset manager Amundi. In the IPO, SBI will sell its 6.3% stake and Amundi its 3.7% stake. In this way a total of 10% stake will be sold.
Company size and valuation
The company had average assets under management of Rs 12.5 lakh crore as of December 31. Its net profit in FY 2025 was Rs 2,531 crore. Investment bankers have valued the company at $12 to $14 billion and have suggested an IPO of $1.2 to $1.4 billion.
IPO process
The aim is to file the draft prospectus by mid-February or the third week, so that the IPO can open in April. However, this will depend on market conditions and Securities and Exchange Board of India (SEBI) approval, which usually takes two to three months.
Valuation discussions and bankers
Different investment banks have offered different valuations. Final assessment will be decided closer to the time of filing. Nine banks including SBI Capital Markets, Kotak Mahindra Capital, Axis Bank have been entrusted with the management of this IPO. Earlier, some big banks like Citigroup and JP Morgan had walked away from the deal due to differences over fees.
What is the environment of Indian IPO market?
The Indian IPO market is hot. In the year 2025, 103 companies raised Rs 1.76 lakh crore. Similarly, ICICI Prudential Asset Management’s $1.2 billion IPO came last month and Canara Robeco Asset Management was listed in October. Public sector banks have been asked to list their subsidiaries.
