SBI Funds Management is preparing to launch its initial public offering within the next two months, targeting a July 2026 launch for the country's largest mutual fund house. The asset management joint venture between State Bank of India and Amundi is aiming for an IPO size of approximately ₹13,000 crore. According to sources familiar with the development, the fund house has been engaging with top asset managers to secure commitments for the issue, with senior executives including Deputy Managing Director D.P. Singh and Srinivas Jain leading meetings with investment teams of the top 20 asset managers.
SBI Funds Management currently holds a dominant position in India's mutual fund industry with assets under management of over ₹12.5 lakh crore. The company's shares traded at around ₹760-770 apiece in the unlisted market last week, valuing the fund house at approximately ₹1.55 lakh crore. This valuation places it slightly behind ICICI Prudential Asset Management, which is valued at ₹1.58 lakh crore as the country's second-largest mutual fund house, while HDFC Asset Management Company is valued at about ₹1.16 lakh crore as the third largest.
The ownership structure of SBI Funds Management shows SBI holding a 61.9% stake while Amundi owns 36.4% of the asset management joint venture. The company filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India in mid-March 2026. According to sources, interactions with most large institutional investors have now been concluded, with in-person meetings held to build conviction around the issue. The aim is to launch the IPO in the first month of the second quarter of FY27 once regulatory approvals are obtained.
Meanwhile, microfinance institution Arohan Financial Services has filed preliminary papers with market regulator Sebi to raise funds through an initial public offering comprising a fresh issue of shares worth ₹600 crore. The IPO will also include an offer for sale (OFS) of 4.04 crore shares by existing investors. The proceeds from the fresh issue will be utilized to boost the company's capital base and for general corporate purposes. This filing comes after the successful listings of Aye Finance and Kissht in 2026, indicating continued momentum in the microfinance sector's public market participation.
