SBI Funds sets the ball rolling for up to Rs 13,000-cr IPO

Mumbai: SBI Funds Management, the country’s largest mutual fund house, has in recent weeks met top Indian asset managers as part of roadshows ahead of the proposed launch of its initial public offering over the next two months, according to three people aware of the development.

The fund house’s senior executives, including deputy managing director D.P. Singh and chief investment officer-equities R. Srinivasan, have led a series of meetings with investment teams of the top 20 asset managers to secure commitments for the IPO and the anchor book, they said.

The asset management joint venture between State Bank of India and Amundi is looking to launch the issue as early as July. The issue size could be around ₹13,000 crore. SBI and Amundi currently hold 61.9% and 36.4% stakes in SBI Funds, respectively.

Emails sent to SBI Funds Management and the investment bankers remained unanswered.

“The aim is to launch the IPO in the first month of the second quarter of FY27 once regulatory approvals come through,” a person aware of the discussions said.

SBI Funds, with assets under management of over ₹12.5 lakh crore, filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India in mid-March.

According to people in the know, interactions with most large institutional investors have now been concluded. “There have been in-person meetings with AMCs to build conviction around the issue,” one of the officials quoted above said.

SBI Funds shares traded at around ₹760-770 apiece in the unlisted market last week, valuing the fund house at around ₹1.55 lakh crore. The market capitalisation of ICICI Prudential Asset Management, the country’s second-largest mutual fund house, stood at ₹1.58 lakh crore on Friday, while HDFC Asset Management Company, the third largest, was valued at about ₹1.16 lakh crore.