Kolkata: India’s biggest asset management company and an arm of the largest bank, SBI, has filed the draft red herring prospectus with market regulator Sebi to float its initial public offering. It is going to be entirely an OFS (Offer for Sale) with the promoters diluting their stake. Reports state that up to 20.37 crore equity shares will be offered through this route and there will be no fresh issue of shares at all.
C S Setty, who is chairman of State Bank of India as well as SBI Funds Management said that they would submit the DRHP by March and the plan is to complete the listing process by September 2026. According to the draft red herring prospectus, both State Bank of India (SBI) and Amundi India Holding will reduce their stakes.
Two other listed SBI firms
SBI Mutual Fund, or more specifically SBI Funds Management (SBIFML), will be the third company in the SBI universe to be listed. Two are already being traded in the stock exchanges. These are SBI Cards and SBI Life Insurance. SBI Cards has a market cap of about Rs 65,530 crore and SBI Life Insurance has a market cap of about Rs 1.91 lakh crore.
Other listed asset management companies which are listed in the stock exchanges are ICICI Prudential AMC, HDFC AMC, UTI AMC, Aditya Birla Sun Life AMC, Shriram AMC and Nippon Life India Asset Management.
Battery of merchant bankers
The firm has appointed a battery of prominent merchant bankers to manage the issue. The list includes Axis Capital, BofA Securities India, HSBC Securities and Capital Markets (India), ICICI Securities, Kotak Mahindra Capital, Jefferies India, JM Financial, Motilal Oswal Investment Advisors and SBI Capital Markets.
SBI Mutual Fund business
SBI Funds Management, the company that owns SBI Mutual Fund, is a joint venture between State Bank of India and Paris-based Amundi, which happens to be Europe’s largest asset management company and one of the top 10 firms worldwide with more than €2.38 trillion in assets. While SBI holds 61.98% stake in SBI Funds Management, Amundi holds 36.40%.
As of Q3FY26, SBI Mutual funds has a quarterly average assets under management of nearly Rs 12.5 lakh crore. SBI Mutual Fund began operations in 1987. After the debut by UTI, which flagged off the journey of mutual funds in the country, SBI Mutual Fund was the second in this business.
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