SEBI Approves SBI Mutual Fund IPO; Promoters To Sell 20.37 Crore Shares via OFS

The SBI Mutual Fund IPO has cleared a major hurdle before its market launch, receiving regulatory clearance from the SEBI

The Securities and Exchange Board of India (SEBI) has officially given SBI Mutual Fund the green light to launch its IPO. This major regulatory update comes amid heightened market anticipation surrounding other major public issues, including the National Stock Exchange (NSE) and Reliance Jio. Investors are closely monitoring this development as India’s largest asset manager prepares to enter the primary market.

The eagerly awaited public issue will be made entirely as an offer for sale (OFS) by existing shareholders. This means that the upcoming share sale will not involve any fresh issuance, and the fund house itself will not receive any capital from public subscriptions. Instead, the entire financial proceeds from the market launch will accrue directly to the selling promoters.

The public offering will allow existing joint venture partners to partially monetize their holdings in the corporate entity. State Bank of India (SBI) will sell 128.3 million equity shares from its existing ownership block. Meanwhile, its foreign partner, Amundi India Holdings, will sell 75.3 million equity shares through the same book-built window, bringing the total offering size to 20.37 crore equity shares.

Although the company has not officially announced the firm pricing, market experts estimate the total issue value to be approximately ₹13,000 crore. If these financial estimates are accurate, the fund house will hold the title of the largest initial public offering ever in the domestic asset management space. The exact price band and public subscription dates will be made public when the entity files its red herring prospectus (RHP).

Upon its official debut on the BSE and NSE exchanges, the business will create history as the sixth listed asset management player in the Indian capital markets. It will join the elite ranks of already listed sector peers, including HDFC AMC, Nippon Life India AMC, ICICI Prudential AMC, UTI AMC, and Aditya Birla Sun Life AMC.

The enterprise firmly stands as the largest asset manager in the country, with industry-leading average assets under management (AUM) of approximately ₹12.50 lakh crore. The business initially started as a dedicated fund house in 1987. It later transformed into a structured joint venture corporate setup in 1992, combining the domestic distribution network of State Bank of India with the global financial expertise of Amundi Asset Management.

The company has continued to deliver strong financial expansion throughout its operational period. For FY2025, the asset management firm reported total revenue from operations of ₹3,597.76 crore, a steady increase from ₹2,690.56 crore reported in FY2024. Profit after tax also increased significantly to ₹2,540.15 crore in FY2025 compared to ₹2,072.79 crore in the previous fiscal year.