SBI Funds Management Plans $1.5 Billion IPO in March

Why It Matters

The transaction could reshape India’s asset‑management landscape and set a pricing benchmark for future financial services IPOs. It also signals confidence in the sector despite a broader market slowdown.

Key Takeaways

• SBI Funds targets $1.5 bn IPO, valuation $15 bn.
• Would be India's largest asset‑manager IPO to date.
• Offering size represents 10% stake from SBI and Amundi.
• Market slowdown may pressure pricing despite strong AUM.
• Multiple banks appointed; Citi, JPMorgan declined low fees.

Pulse Analysis

India’s IPO pipeline has cooled after two years of record fundraising, leaving investors cautious about new listings. In this environment, SBI Funds Management’s planned $1.5 billion raise stands out, not only because of its size but also due to the firm’s dominant market position with 12.5 trillion rupees in assets under management. The IPO will test whether the sector’s growth prospects can outweigh broader equity market weakness, offering a litmus test for capital‑intensive financial services firms seeking public capital.

Valuing SBI Funds at up to $15 billion places it just below ICICI Prudential’s $16.7 billion benchmark, suggesting a competitive pricing strategy that balances investor appetite with realistic multiples. The 10% stake being sold by State Bank of India and Amundi provides liquidity for the owners while preserving control, a structure common among large Indian conglomerates. By partnering with a slate of banks—including Kotak Mahindra, Axis, and HSBC—the issuer aims to broaden distribution and mitigate pricing risk, even as Citi and JPMorgan withdrew over fee considerations.

For institutional and retail investors, the IPO could become a gateway to India’s burgeoning wealth‑management market, which is expected to grow at double‑digit rates over the next decade. Successful pricing may encourage other financial services firms to consider listings, revitalizing a sluggish market. Conversely, a muted response could reinforce the narrative of a constrained equity environment, prompting companies to explore alternative financing routes such as private placements or debt issuance. Either outcome will shape capital‑raising dynamics in India’s financial sector for years to come.

SBI Funds Management plans $1.5 billion IPO in March

The planned share sale comes as India’s market for first‑time public offerings slows after two consecutive years of record fundraising · Updated · February 18, 2026 at 03:10 PM

SBI Funds Management Ltd. may file draft papers for an initial public offering next month, according to people familiar with the matter, in what could be the biggest listing by an asset‑management company in India.

The nation’s biggest asset manager plans to submit its draft red‑herring prospectus for the IPO that could raise as much as $1.5 billion in the first half of March, the people said, asking not to be identified because the information is private.

SBI Funds is targeting a valuation of as much as $15 billion, one of the people said. That would be a shade lower than ICICI Prudential Asset Management Co.’s current valuation of $16.7 billion, following a $1.2 billion IPO in December by India’s second‑largest asset manager.

Deliberations are ongoing and details of the offering, including size and timing, could change, they said.

A representative for SBI Funds didn’t respond to requests for comment.

The planned share sale comes as India’s market for first‑time public offerings slows after two consecutive years of record fundraising. Weaker equity markets have weighed on valuations, and recent listings — including those of lender Aye Finance Ltd. and data‑analytics firm Fractal Analytics Ltd. — have seen subdued demand.

SBI Funds has appointed Kotak Mahindra Capital Co., Axis Bank Ltd., SBI Capital Markets Ltd., Motilal Oswal Investment Advisors Ltd., ICICI Securities Ltd., JM Financial Ltd., and local units of HSBC Holdings Plc, Jefferies Financial Group Inc. and Bank of America Corp. to manage the share sale, the people said. Citigroup Inc. and JPMorgan Chase & Co. had earlier opted out of advising on the IPO due to low fees.

SBI Funds, with total assets under management of 12.5 trillion rupees, is jointly owned by State Bank of India and Amundi SA. The partners said last year they plan to sell a combined 10 % stake through an IPO.

Published on February 18, 2026