SBI Mutual Fund IPO: RHP Filing Expected Next Week as Rs 11,000 to 12,000 Crore Offer for Sale Nears Final Stage

The SBI Mutual Fund IPO is approaching a key milestone, with SBI Funds Management Limited set to file its Red Herring Prospectus as early as next week ahead of a public listing. The issue, which will take India’s largest asset manager public, is structured entirely as an offer for sale of up to 20.37 crore equity shares, with no fresh issue component, and is currently estimated at around Rs 11,000 to 12,000 crore based on the latest reports, though earlier market estimates had pegged the issue closer to Rs 13,000 crore.

SBI Funds Management filed its Draft Red Herring Prospectus with SEBI on 19 March 2026 and received the regulator’s observation letter on 12 June 2026. The company is a joint venture between State Bank of India, which holds a 63 percent stake, and France’s Amundi, which holds the remaining 37 percent, and manages assets of around Rs 12.5 lakh crore. The SBI Mutual Fund IPO is targeted to list on both the BSE and NSE, making it the third SBI group company to go public after SBI Life Insurance and SBI Cards.

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SBI Mutual Fund IPO: Key Structure and Shareholders

The SBI Mutual Fund IPO is being offered entirely through an offer for sale, meaning all proceeds will go to existing shareholders rather than the company itself. State Bank of India, which holds a 63 percent stake in SBI Funds Management, plans to divest a 6.3 percent stake, equivalent to around 12.83 crore shares, while joint venture partner Amundi, which holds the remaining 37 percent, will sell a 3.7 percent stake, or roughly 7.54 crore shares.

The public issue carries a standard 35 percent retail quota, in line with SEBI norms for book built offers, alongside allocations for qualified institutional buyers and non institutional investors. Since the SBI Mutual Fund IPO has no fresh issue component, it does not raise growth capital for the company, but instead provides a partial monetisation route for its two existing shareholders while creating a continuously traded public market valuation for India’s largest asset management business.

The table below summarises the key details of the SBI Mutual Fund IPO as known so far.

Detail	Value
DRHP Filed	19 March 2026
SEBI Observation Letter	12 June 2026
Issue Structure	100% Offer for Sale
Shares on Offer	Up to 20.37 crore
Estimated Issue Size	Approx Rs 11,000 to 12,000 crore
Retail Quota	35% of the issue
RHP Filing Expected	Next week (early July 2026)
Shareholding (Pre-IPO)	SBI 63%, Amundi 37%
AUM (Dec 2025)	Approx Rs 12.5 lakh crore

SBI Mutual Fund IPO Financials and Valuation

SBI Funds Management’s revenue grew from Rs 2,161.6 crore in FY23 to Rs 3,597.8 crore in FY25, a CAGR of about 16 percent, while operating profit and profit after tax grew at a faster 20.1 percent and 24.2 percent CAGR respectively over the same period. For the nine months ended December 2025, the company reported revenue of Rs 3,251 crore and profit of Rs 2,432 crore, up sharply year on year. Use the Univest Screener to compare other listed asset management companies ahead of the SBI Mutual Fund IPO.

The company is debt free, with a FY25 net worth of Rs 830 crore and a dividend payout ratio that has risen sharply to 44 percent from just 13 percent in FY23. Its cost to income ratio has also improved, from 20.6 percent in FY25 to 18.9 percent in the nine months to December 2025. With the issue now estimated at around Rs 11,000 to 12,000 crore against the same 20.37 crore share offer for sale, market watchers expect the eventual price band to be set somewhat below earlier Rs 13,000 crore estimates once the RHP is filed.

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Why SBI Mutual Fund Is India’s Largest Asset Manager

SBI Mutual Fund commands a market share of around 15.4 percent of industry assets under management, making it the largest fund house in India ahead of its listed and unlisted peers. Around a third of its mutual fund quarterly average assets sit in lower fee ETFs and index funds, including the SBI Nifty 50 ETF and SBI BSE Sensex ETF, which keeps blended fee yields lower than some actively managed focused peers even as scale keeps overall costs down. Individual investors account for about 48 percent of the company’s mutual fund assets, a relatively conservative mix compared with some equity led competitors.

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Conclusion

The SBI Mutual Fund IPO is entering its final pre-listing phase, with the RHP filing expected as early as next week and the price band likely to follow soon after. As a 100 percent offer for sale backed by a debt free, scaled and consistently profitable franchise, with State Bank of India and Amundi retaining majority ownership post listing, the issue is likely to be closely watched as a benchmark valuation event for India’s asset management industry. Investors should examine the final RHP, price band, retail quota mechanics and fee yield trends once official disclosures are available, and IPO investments are subject to market risk, so a SEBI registered advisor should be consulted before applying.

Frequently Asked Questions

When will SBI Funds Management file its RHP?

Ans. SBI Funds Management is expected to file its Red Herring Prospectus as early as next week, in the first week of July 2026, after which the price band for the SBI Mutual Fund IPO is likely to be disclosed.

What is the size of the SBI Mutual Fund IPO?

Ans. The SBI Mutual Fund IPO is currently estimated at around Rs 11,000 to 12,000 crore based on the latest reports, structured entirely as an offer for sale of up to 20.37 crore equity shares with no fresh issue component.

What is the shareholding structure of SBI Funds Management before the IPO?

Ans. SBI Funds Management is a joint venture in which State Bank of India holds a 63 percent stake and France’s Amundi holds the remaining 37 percent, with both partners selling a portion of their holdings in the offer for sale.

What is the retail quota in the SBI Mutual Fund IPO?

Ans. The SBI Mutual Fund IPO carries a standard 35 percent retail quota, in line with SEBI’s allocation norms for book built public issues.

Who is selling shares in the SBI Mutual Fund IPO?

Ans. State Bank of India plans to divest a 6.3 percent stake and Amundi plans to sell a 3.7 percent stake in SBI Funds Management Limited through the offer for sale.

How big is SBI Mutual Fund by assets under management?

Ans. SBI Mutual Fund had assets under management of approximately Rs 12.5 lakh crore as of December 2025, giving it a market share of around 15.4 percent and making it India’s largest asset management company.

Should investors apply for the SBI Mutual Fund IPO?

Ans. This article does not constitute investment advice. Investors should study the final RHP, price band and prospectus once available and consult a SEBI registered advisor before applying for the SBI Mutual Fund IPO.