SBI Funds Management Ltd. is preparing to launch its initial public offering (IPO) as early as next week, aiming to raise up to $1.5 billion, according to knowledgeable sources.
India’s largest asset manager plans to allocate approximately three-quarters of the shares to domestic investors. Additionally, the firm is considering a pre-IPO share placement that could generate up to $350 million. Discussions with banks regarding this strategy are currently underway.
The company is targeting a valuation between $13 billion and $15 billion, which would place it below rival ICICI Prudential Asset Management Co., currently valued at about $17.6 billion following its $1.2 billion IPO in December.
The specifics of the IPO, including its size and timing, remain in flux, as ongoing deliberations may affect the proposed details. SBI Funds did not respond to inquiries for comment.
According to the draft prospectus, SBI Funds has engaged nine banks, including Kotak Mahindra Capital Co., Axis Bank Ltd., SBI Capital Markets Ltd., JM Financial Ltd., and HSBC Holdings Plc, to manage the IPO process.
SBI Funds oversees assets worth approximately ₹1248 crore, based on data from the Association of Mutual Funds in India. It is jointly owned by State Bank of India Ltd. and Amundi SA. State Bank of India intends to sell up to 128.3 million shares, approximately 6.3% of its total equity in the offering, while Amundi plans to offload up to 75.4 million shares, or 3.7%. The IPO will not involve any new share issuance.
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Published on April 24, 2026.
