Updated Feb 19, 2026 09:40 IST
The country’s largest asset management company SBI Funds Management Ltd. It may file draft papers for its most awaited IPO next month.
highlights
- SBI Funds Management may launch an IPO of around $1.5 billion in March.
- The valuation of this IPO can be up to $15 billion.
- This company with AUM of Rs 12.5 trillion is India’s largest asset manager.
Upcoming IPO: Another big name is preparing to enter the Indian capital market. The country’s largest asset management company SBI Funds Management Ltd. It may file draft papers for its most awaited IPO next month. According to Bloomberg news, this issue can raise up to about $ 1.5 billion (Rs 13.6 thousand crore), which can be the largest public issue ever for the Indian asset management industry.
Bloomberg sources say the company may file a draft red herring prospectus (DRHP) in the first fortnight of March. SBI Funds is targeting a valuation of around $15 billion. This valuation will be slightly lower than ICICI Prudential Asset Management’s current level of $16.7 billion. Let us tell you that ICICI Prudential had made headlines in December by launching an IPO worth $1.2 billion.
However, the size and timing of the issue are not final yet and are subject to change depending on market conditions.
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Entry amid slowdown in IPO market
This offer from SBI Funds comes at a time when the Indian IPO market is looking a bit sluggish after the last two record years. Weak equity markets have put pressure on valuations. Two IPOs like Aye Finance and Fractal Analytics that came in February did not get the expected enthusiasm from investors. In such a situation, the issue of SBI funds is going to prove important for the market.
Who will handle the issue?
According to sources, many big investment banks and financial institutions have been appointed to manage this IPO. These include Kotak Mahindra Capital, Axis Bank, SBI Capital Markets, Motilal Oswal Investment Advisors, ICICI Securities, JM Financial and the Indian units of HSBC, Jefferies and Bank of America. However, it is being told that Citigroup and JP Morgan distanced themselves from the advisory role due to low fees.
Strong AUM and joint ownership
SBI Funds has assets under management (AUM) of about Rs 12.5 lakh crore (Rs 12.5 trillion), making it India’s largest asset manager. The company is owned by State Bank of India and French asset management company Amundi SA. Both partners had indicated last year that they may jointly sell about 10% stake through IPO.
Disclaimer: This article is for informational purposes only and should not be construed as investment advice in any way. ET NOW Swadesh recommends its readers and viewers to consult their financial advisors before taking any money-related decisions.
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