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SBI Funds Management IPO Gets SEBI Nod: Here's Everything You Need to Know

SBI Funds Management has received SEBI approval for its IPO. Check the issue dates, OFS details, financial performance, investor reservation, valuation, and everything you should know before the public issue opens.

Revati Krishna
Published: 3 Jul 2026, 04:13 PM IST (6 hours ago)
Last Updated: 3 Jul 2026, 05:01 PM IST (5 hours ago)
3 min read
Quick Summary

SBI Funds Management has received SEBI approval for its IPO, which is expected to open on 13 July 2026. The ₹1 face value issue is entirely an Offer for Sale (OFS), allowing investors to buy a stake in India's largest mutual fund company.

SBI Funds Management, India's largest mutual fund company, has received SEBI approval for its much-awaited IPO. The public issue will give investors their first opportunity to own a stake in the country's biggest asset management company, with the shares set to be listed on both the BSE and NSE. The IPO is expected to be one of the biggest public issues of 2026

The IPO comes at a time when India's mutual fund industry continues to witness strong growth, supported by rising retail participation, increasing Systematic Investment Plan (SIP) inflows, and growing financial awareness among investors.

SBI Funds Management IPO Details 

  • The proposed IPO is a 100% Offer for Sale (OFS), meaning SBI Funds Management will not issue any fresh equity shares or receive any proceeds from the issue. Instead, the existing shareholders will sell part of their holdings to the public.

  • The offer consists of 20,37,09,239 equity shares with a face value of 1 each. Out of the total offer, State Bank of India (SBI) will sell up to 12,83,34,397 shares, while Amundi India Holding will offer up to 7,53,74,842 shares.

  • Currently, SBI owns 61.76% of the company, while Amundi India Holding holds 36.26%. Following the listing, both promoters will continue to remain significant shareholders in the company.

SBI Funds Management IPO Details

According to the announced schedule, the IPO will open for public subscription on July 13, 2026, and close on July 16, 2026. The tentative timeline is as follows:

Event

Date

Expected IPO Opens

July 13, 2026

Expected IPO Closes

July 16, 2026

Expected  Basis of Allotment

July 17, 2026

Expected Shares Credited to Demat Accounts

July 20, 2026

Expected Listing

July 21, 2026

Source : DRHP

SBI Funds Management IPO Reservation for Investors

The IPO follows SEBI's prescribed allocation framework for public issues.

Investor Category

Reservation

Qualified Institutional Buyers (QIBs)

Not more than 50%

Non-Institutional Investors (NIIs/HNIs)

Not less than 15%

Retail Individual Investors

Not less than 35%

Additionally, up to 60% of the QIB portion may be allocated to Anchor Investors one working day before the issue opens. Half of the anchor allocation will remain locked in for 30 days, while the remaining half will be subject to a 90-day lock-in period.

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SBI Funds Management IPO Financial Performance

SBI Funds Management has continued to deliver strong financial performance, supported by steady growth in assets under management and a highly profitable asset-light business model. The company has consistently reported healthy earnings while maintaining strong return ratios.

Company Financials (₹ Crore)

Particulars

9M FY26 (Dec 31, 2025)

FY25

FY24

FY23

Total Assets

7,824.71

8,771.86

7,106.93

4,984.24

Total Income

3,883.24

4,236.15

3,426.08

2,412.58

EBITDA

3,186.56

3,412.94

2,718.82

1,810.41

Profit After Tax (PAT)

2,432.91

2,540.15

2,072.79

1,339.71

Net Worth

8,297.53

6,747.75

4,751.38

Source: DRHP

Between FY23 and FY25, the company's total income increased from 2,412.58 crore to 4,236.15 crore, while profit after tax nearly doubled from 1,339.71 crore to 2,540.15 crore. During the first nine months of FY26, SBI Funds Management reported 3,883.24 crore in total income and 2,432.91 crore in profit after tax, indicating continued earnings momentum.

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Key Performance Indicators

The company continues to maintain ROE above 30%, highlighting its efficient use of shareholder capital. Combined with exceptionally high EBITDA margins and a capital-light operating model, SBI Funds Management remains one of the most profitable companies in India's asset management industry.

KPI

Dec. 31, 2025

Mar. 31, 2025

Return on Equity (ROE)

31.25%

33.77%

Return on Net Worth (RoNW)

31.25%

33.77%

EBITDA Margin

98.03%

94.86%

Source: DRHP

SBI Funds Management India's Largest Asset Manager

SBI Funds Management is the country's largest mutual fund house by Quarterly Average Assets Under Management (QAAUM). As of December 31, 2025, it managed 12.50 lakh crore in mutual fund QAAUM, giving it a 15.4% market share.

The company offers a diversified range of investment products, including equity, debt, hybrid, passive, and exchange-traded funds (ETFs). It is also the largest ETF manager in India, benefiting from the increasing popularity of passive investing.

Its retail investor franchise remains one of its biggest strengths. The company manages 15.76 million live SIP accounts, which generate recurring monthly investments and provide stable inflows. It also has an extensive distribution network with a strong presence in smaller towns and cities beyond India's top 30 urban centres, helping expand mutual fund penetration across the country.

SBI Funds Management Valuation and Lead Managers

While the company has not yet announced the official price band, media reports suggest the IPO could value SBI Funds Management at around 1.15 lakh crore to 1.20 lakh crore.

The issue is being managed by Kotak Mahindra Capital, Axis Capital, BofA Securities, HSBC Securities, ICICI Securities, Jefferies, JM Financial, Motilal Oswal Investment Advisors, and SBI Capital Markets as the book-running lead managers. KFin Technologies has been appointed as the registrar to the issue.

The IPO is expected to attract interest from both institutional and retail investors, given SBI Funds Management's market leadership, strong financial performance, and established position in India's rapidly growing asset management industry.

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