SBI Funds launches biggest IPO of 2026, price band set at ₹545-574 per share

In what is set to be the biggest D-street launch so far this year, SBI Funds Management Ltd filed its red herring prospectus late on Wednesday for an initial public offering worth up to ₹11,693 crore.

The price band for the equity shares is set at ₹545-574 a share, an announcement in local newspapers showed. Prior to the price band announcement, SBI Funds shares traded at approximately ₹830 apiece in the unlisted market.

The asset manager, a subsidiary of State Bank of India (SBI), will open its public issue for subscription on 14 July. At the upper end of the price band, the company will command a market capitalization of nearly ₹1.17 trillion.

The IPO will consist entirely of an offer for sale by its promoter shareholders. SBI will sell up to 128.3 million shares, representing a 6.3% stake, while joint venture partner Amundi India Holding will offload up to 75.6 million shares, equivalent to a 3.7% stake. Together, SBI and Amundi currently hold around 98% of SBI Funds Management.

Initially, Amundi India Holding’s stake was held by Societe Generale SA, which was transferred to Amundi in June 2011.

SBI Mutual Funds’ IPO will be the first billion-dollar-plus launch this calendar year. After a slow start to the calendar year, multiple large IPOs were filed last month after West Asia tensions seemed to settle down. However, US president Donald Trump’s comments on Wednesday, calling to end the ceasefire with Iran, has shaken secondary market sentiment in India to some extent, with the Sensex and Nifty plunging over 2% each on Wednesday to log their worst single-day fall since March-end.

“Markets will always be uncertain, but the trust in our company will always be there,” said Debasish Mishra, the newly appointed managing director and chief executive of the fund manager said. “Even if market conditions were worse than the current situation, our launch timeline would not have been affected.”

Mishra said the company was banking on the IPO giving the company necessary visibility in the market. “It will make us more responsible and transparent and, as a natural progression, help us make the market for more mutual fund penetration,” he said.

The IPO will mark the culmination of a yearlong process that began in August 2025, with SBI chairman C.S. Setty saying that SBI General Insurance and SBI Mutual Fund were under consideration for public listing. At that time, he had not given any specific timeline or valuations for the IPOs.

Mishra, who was deputy managing director at SBI prior to his current role, took over at SBI Funds last week after his predecessor Nand Kishore superannuated.

“My joining as CEO at time of IPO is a natural coincidence,” Mishra told Mint, adding that his appointment is unlikely to change the company’s strategy as it becomes a listed entity. “The company already has internal targets set according to a five-year plan for the 2025-30 period. Even after IPO, we will continue focusing on good governance, value creation and customer centricity.”

Established in 1992, the company offers financial services including mutual funds, portfolio management services, offshore funds, alternative investment funds and offerings through GIFT City. It is now planning on expanding its product offerings and investment solutions, including passive and alternative offerings, said executive president Srinivas Jain.

“We are launching new capabilities in category-II and category-III AIFs (alternative investment funds) and will also scale our private equity capability soon. It all depends on the building the right talent pool, which might be via routes like acquisition-hirings or joint ventures,” he added.

As per the company’s 2026 annual report, SBI Funds serves 18 million unique investors in the mutual fund business and manages a portfolio of 128 mutual fund schemes.

SBI Funds is the largest asset manager in India, with over ₹29 trillion in assets across its businesses. Its mutual fund average assets under management e...