India's Largest Asset Manager SBI MF Makes Second Bid to Go Public, Files DRHP to Sell 10% Stake

India's biggest mutual fund company, SBI Funds Management, has taken the first formal step towards listing on the stock market by filing a draft prospectus with market regulator Sebi.

The IPO will not involve any new shares being issued by the company. Instead, its two existing owners, State Bank of India (SBI) and French fund house Amundi, the largest asset manager in Europe, will jointly sell a 10% stake through Offer for Sale (OFS). This means any money raised will go to the sellers, not the company itself.

In total, up to 20.37 crore shares will be on offer. SBI, which currently owns a 61.8% stake, will sell 6.3%, while Amundi, which holds 36.3%, will offload 3.7%.

Second Attempt at Listing

This is not the first time SBI has tried to take its fund management arm public. A similar plan was drawn up in 2021–22 but was shelved, partly due to disruptions caused by the COVID-19 pandemic, according to reports. The latest filing marks a fresh push to get the listing done.

If it goes through, this will be the third SBI subsidiary to list on the exchanges, following SBI Cards and SBI Life Insurance.

Notably, nine investment banks are managing the offering, including Kotak Mahindra Capital, Axis Capital, ICICI Securities, HSBC, Jefferies, JM Financial, BofA Securities and Motilal Oswal.

It is to be noted that SBI Mutual Fund recently picked up a significant stake in one-stop home services platform, Urban Company, through bulk deals on the stock exchanges. On Wednesday, the asset manager purchased 3.51 crore shares on the NSE at an average price of ₹109.85 per share and an additional 2.25 crore shares on the BSE at ₹109.83 apiece.

The combined transaction, valued at around ₹632 crore, translates into an additional 4% stake in the one-stop home services platform. As per shareholding data for the December quarter, SBI Mutual Fund had previously held a 1.89% stake in Urban Company, making this a notable step-up in its position.

The development sent Urban Company's stock soaring that day. The shares hit the 20% upper circuit intraday, touching a high of ₹131.44 on the NSE, before paring some gains to close 10.33% higher at ₹121.20.

SBI Funds Management is the market leader in India's mutual fund industry with a share of over 15%. It manages assets worth ₹12.5 lakh crore and counts over 1.6 crore individual investors as clients, as of December 2025.

In terms of mutual fund average assets under management, the company manages ₹6,06,139 crore, which is nearly half, 48.05%, of the entire mutual fund industry's average assets.

The company's financials paint a healthy picture. For the nine months ending December 2025, it reported revenue of ₹3,251 crore and a net profit of ₹2,433 crore. For the full financial year 2024–25, revenue came in at ₹3,598 crore with a net profit of ₹2,540 crore.

Riding Broader Industry Wave

The listing comes at a time when India's mutual fund sector is seeing strong and sustained interest from investors, fuelled by growing participation from everyday savers, rising monthly SIP (Systematic Investment Plan) contributions, and a broader shift towards financial products.

Rival ICICI Prudential Asset Management, the country's second-largest fund house, had a successful market debut recently, becoming India's fourth most-subscribed IPO. Its stock jumped over 23% on its first day of trading and has held up, remaining around 8.5% above its listing price since then.