India’s Biggest Asset Manager SBI Funds Might $1.2 Bn IPO in 2026

SBI Funds Management Ltd, India’s largest asset manager, is weighing an initial public offering that could raise as much as $1.2 billion in the first half of 2026, Bloomberg reported. The deliberations are reportedly at an early stage and details could change.

State Bank of India and French asset manager Amundi, the company’s two promoters, plan to sell a combined 10% stake through the offering, and SBI Funds may reportedly seek proposals from banks to run the transaction in the coming weeks.

Valuation & Structure

As per the report, SBI Funds could be valued at around $12 billion, which would make the planned transaction one of the largest IPOs expected in India next year. The final structure, including the mix of fresh issue and offer-for-sale, pricing strategy, and anchor allocations, will be determined as bankers complete the valuation process.

The move comes amid an active primary IPO market in India, with domestic listings raising nearly $18 billion this year, led by major offerings such as Tata Capital’s roughly $1.7 billion IPO. Investor appetite for well-priced, large-cap financial sector deals remains strong, a backdrop that is likely to influence the timing and pricing of any SBI Funds listing.

Process

The company reportedly plans to invite banks to pitch for mandates and conduct a fresh valuation before finalizing the size and timing of the offering. The report emphasised that discussions are still preliminary, and the plan could be revised or postponed depending on market conditions and internal approvals.

SBI holds a majority stake in SBI Funds Management Ltd. (SBIFML), while Amundi serves as the co-promoter. Recent reports suggest that SBI owns approximately 61.9% of the company and Amundi about 36.4%. Given the asset manager’s scale and strong parentage, it is seen as an attractive candidate for a major institutional listing, particularly if the promoters retain a controlling stake after the offering.