If it goes ahead, SBI Funds' proposed March listing could raise as much as $1.5bn — making it one of the largest public listings by an asset manager in India. Draft prospectus filings are being prepared for an early-March IPO that would seek a roughly $15bn valuation, people briefed on the matter said. The asset manager, jointly owned by State Bank of India and Amundi SA, plans to sell a combined 10% stake and manages about 12.5 trillion rupees of assets. A public float would create a listed benchmark for India’s largest retail-focused fund house and provide liquidity for the selling shareholders. It will also test investor appetite after a cooling IPO market and a run of muted listings.

Deal outline and size

SBI Funds Management Ltd is lining up a large initial public offering, with draft prospectus filings expected in early March. The proposed offer could raise up to $1.5bn and would seek to value the firm at about $15bn, according to people briefed on the matter. Deliberations over the precise structure remain ongoing and the company may alter timing or size before filing.

Were the offering to proceed at the $1.5bn level, it would be among the biggest public listings by an asset manager in India and would create a listed benchmark for the country's largest retail-focused fund house.

Who’s advising the sale

SBI Funds has appointed a mix of domestic and global banks to manage the share sale, signalling the anticipated size and distribution complexity:

  • Kotak Mahindra Capital
  • Axis Bank
  • SBI Capital Markets
  • Motilal Oswal Investment Advisors
  • ICICI Securities
  • JM Financial
  • Local units of HSBC, Jefferies and Bank of America

Earlier in the process, Citigroup and JPMorgan had been involved but later stepped away from advising the IPO, reportedly over fee terms.

Ownership, assets and what’s being sold

SBI Funds is jointly owned by State Bank of India and Amundi SA. The two partners have indicated plans to sell a combined 10% stake via the public offering. The firm oversees about 12.5 trillion rupees in assets under management, placing it among India’s largest retail-focused mutual fund houses. A public listing would provide a market price for that scale and liquidity for the selling shareholders.

Market context and investor appetite

  • India's IPO market has cooled after two years of record fundraising, with weaker equity markets reducing headline valuations.
  • Recent listings have seen muted demand, illustrating a more cautious investor mood.
  • Underwriters will balance float size with likely demand from anchor institutions and retail buyers; pricing will be sensitive to domestic sentiment and international fund appetite.

Factors that could influence the deal include broader equity market direction in March, comparative valuations of listed asset managers and strategic investor interest at launch prices.

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Draft prospectus filings are expected in early March, though the final size and timing may change.

This article was created with AI assistance.