SBI Funds Management seeks Rs 2,000 crore in pre-IPO round

SBI Funds Management, India’s largest mutual fund, is looking to raise up to ₹2,000 crore from institutional investors through a pre-IPO placement ahead of its proposed ₹11,400 crore issue, people familiar with the matter said. The move comes amid strong investor demand for what is set to be India’s largest IPO so far in 2026.

The pre-issue share sale is unlikely to exceed ₹2,000 crore, one of the people said. “The pre-IPO placement will be part of the overall public issue. So, the shares on offer in the IPO could be around ₹9,500 crore,” the person said.

An email sent to SBI Funds Management did not elicit a response until press time.

The fund house, which has received approval from the Securities and Exchange Board of India (Sebi), is set to launch the IPO between July 14 and July 16, with a possible listing on July 21.

The IPO will be entirely an offer for sale (OFS), with no fresh capital being raised. Existing shareholders State Bank of India (SBI) and Amundi India Holding will together sell 20.37 crore equity shares, representing around 10% of the company’s paid-up equity capital.

SBI is expected to sell about 12.8 crore shares, while Amundi will offload around 7.5 crore shares.

SBI Funds Management is a joint venture between SBI, which holds around a 61.9% stake and France-based Amundi with 36.4%.In the unlisted market, SBI Funds shares were trading at around ₹828 apiece on Friday, implying a valuation of about ₹1.68 lakh crore, marginally above the ₹1.65 lakh crore market capitalisation of listed peer ICICI Prudential Asset Management Company.

The stock has gained about 21% in the unlisted market over the past year.

The fund house had a market share of around 15.5% and managed a quarterly average assets under management of about ₹12.5 lakh crore as of December.