SBI Mutual Fund is preparing to launch a massive ₹13,000 crore (₹13,000 crore) IPO next month, marking a major move in India’s asset management industry, as promoters plan to reduce their stake through an offer for sale.
SBI Mutual Fund is set to hit the stock market soon after receiving approval from the Securities and Exchange Board of India. According to sources, the company plans to launch its initial public offering next month, with the issue size expected to be around ₹13,000 crore. This move is likely to generate significant interest, as the company is already a major player in the mutual fund space.
The company filed its draft papers in March, which clearly indicate that the IPO will be entirely an offer for sale. This means that 203.7 million equity shares will be sold by existing shareholders, and there will be no new issue of shares. As a result, the company itself will not receive any new funds from this public offering, and the proceeds will go directly to the selling shareholders.
The primary purpose of this offering is to allow promoters to reduce their shareholding. Currently, State Bank of India holds a 61.98% stake in the company, while Amundi India Holdings holds a 36.40% stake. Following the IPO, both promoters are expected to sell a portion of their stake, increasing public ownership in the firm and improving its market visibility.
SBI Funds Management Limited is a joint venture between State Bank of India and Amundi of France. The company was originally launched in 1987 and holds the distinction of being India’s first mutual fund outside of UTI. Over the years, it has grown to become the country’s largest asset management company, managing average assets of approximately ₹12.5 lakh crore as of December 2025.
Upon listing, SBI Mutual Fund will join a group of asset management companies already listed in India. These include well-known companies such as ICICI Prudential AMC, HDFC AMC, UTI AMC, Aditya Birla Sun Life AMC, Shriram AMC, and Nippon Life India Asset Management. This listing will further strengthen the presence of large and well-known firms in the asset management segment of the stock market.
Several major financial institutions have been appointed as merchant bankers for this IPO. These include Kotak Mahindra Capital, Axis Capital, BofA Securities India, HSBC Securities, ICICI Securities, Jefferies India, JM Financial, Motilal Oswal Investment Advisors, and SBI Capital Markets. Having already received regulatory approval, the IPO is now awaiting its official launch, which is expected next month.
If the IPO proceeds as planned, it will be one of the largest offerings in the asset management sector in recent times. Since the entire issue is an offer for sale, it reflects a strategic decision by the promoters rather than a need for fresh capital. The size of the issue, as well as the company’s strong market position, could make it a closely watched event among investors.
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