SBI Mutual Fund IPO: Capital markets regulator SEBI has approved the initial public offering (IPO) of SBI Mutual Fund, managed by 34-year-old SBI Funds Management, making it closer to its stock market debut. The country’s largest asset management company, with assets of about Rs 12.50 lakh crore, is expected to announce its IPO price band in July, with listing likely next month.

The SEBI nod to launch the IPO has sparked a rally in SBI Mutual Funds unlisted shares. According to the dealers, the stock has gained more than 15 per cent to trade around Rs 860-870 apeice from Rs 750 levels a month ago. The stock was trading nearly 675-680 levels in the beginning of 2026. It is currently commanding a market capitalization of Rs 1.75 lakh crore in the pre-IPO space.

Hitesh Dharawat, Co-founder of Mumbai-based Dharawat Securities said that the recent rise in the stock price can be attributed to the IPO approval, which adding to the Euphoria for the counter but one must note that the IPO-bound companies command a scarcity premium in the unlisted markets and IPO price band is expected to come below its current price in the pre-IPO space.

"There is nothing wrong with the company, but the free-float is limited and a sudden spike in demand is pushing the price higher. It may enjoy some premium to its peers post listing considering its strong market share and unlisted market is discounting that for now. Also, the pre-IPO equity will be locked in from transfer once the RHP for IPO is filed and can not be transferred."

For retail investors, the offer opens a different route into the mutual fund business: scheme investors earn from fund performance, while shareholders in an AMC benefit from the growth of the asset management business. The proposed issue is entirely an offer for sale of 20.37 crore shares, with State Bank of India (SBI) set to sell 12.83 crore shares and Amundi India Holding 7.54 crore shares.

According to the media reports, the IPO of SBI Mutual Fund could be worth about Rs 13,000-13,500 crore, which would make it the biggest IPO among listed mutual fund houses. Its listed peers include HDFC AMC, ICICI Prudential AMC, Aditya Birla Sun Life AMC, Shriram AMC, UTI AMC and Nippon Life India Asset Management.

For the nine-months ended on December 31, 2025, the company reported a net profit at 2,431.91 crore with a revenue from operations at Rs 3,250.64 crore. It clocked a net profit of Rs 2,531.43 crore with a revenue from operations at Rs 3,597.75 crore for the financial year ended on March 31, 2025.

On the business side, SBI Funds Management is still India’s biggest asset management company, with AUM that sits at a market share of over 15 per cent. The firm keeps reporting solid profitability, and the return on equity (ROE) is estimated at around 30–34 per cent, hinting at efficient use of capital and a strong, steady model, said Piyush Jhunjhunwala, Founder & CEO at Stockify.

"The anticipated IP is a major catalyst for investors and  it could be valued anywhere from around Rs 1 lakh crore-1.3 lakh crore. Investors should keep an eye on valuation bands and especially IPO pricing before committing funds, because timing matters and expectations can shift quickly," he said.

Kotak Investment Banking, Axis Securities, Bank of America Securities, HSBC Securities and Capital Markets, ICICI Securities, Jefferies India, JM Financial, Motilal Oswal Investment Advisors and SBI Capital Markets are the book-running lead managers, while KFin Technologies is the registrar for the issue.

Among SBI Mutual Fund’s schemes, SBI Midcap Fund posted the highest five-year return at 15.47 per cent as of June 19, 2026, followed by SBI Small Cap Fund at 14.36 per cent and SBI Large Cap Fund at 11.43 per cent. The issue will give investors a chance to own a stake in the fund house itself, apart from investing through its schemes.