SBI Mutual Fund is likely to file draft papers for a $1.2–1.4 billion IPO by mid-February 2026, with a potential listing targeted for April. If it goes through at the expected valuation of $12–14 billion, this could become one of the biggest financial services listings in India.

The move comes as the primary market stays hot and follows successful AMC listings in late 2025, including ICICI Prudential AMC and Canara Robeco AMC.

IPO snapshot

• Issue size: $1.2–1.4 billion or about ₹10,000–₹12,000 crore

• Valuation: $12–14 billion or over ₹1.1 lakh crore

• Structure: 100 percent Offer for Sale

• Stake sale: ~10 percent total

  • 6.3 percent by State Bank of India

  • 3.7 percent by Amundi

• DRHP filing: Expected mid-February 2026

• Listing target: April 2026

If listed, SBI Mutual Fund would become SBI’s third listed subsidiary after SBI Life and SBI Cards.

Scale and financial strength

SBI Mutual Fund is India’s largest asset manager by size.

• Average AUM: ~₹12.5 trillion as of December 31, 2025

• Market share: ~15.5 percent

• FY25 net profit: ₹2,531 crore, up 23 percent YoY

• SIP book: Tripled over five years

• Investor accounts: Over 2.2 crore

This scale gives SBI MF unmatched reach, especially through more than 22,000 SBI bank branches.

How it stacks up against listed peers

The market is already benchmarking the IPO against listed AMCs.

• SBI MF is the volume leader, driven by massive AUM and EPFO-linked passive flows.

• HDFC AMC remains the margin leader, with the highest equity mix and industry-leading operating margins.

• ICICI Prudential AMC stands out for profit efficiency, converting AUM into earnings better than most peers.

At the expected pricing, SBI MF could come in at roughly 38–42x forward earnings, close to peers despite lower yield per unit of AUM.

Why 2026 is shaping up as the AMC year

• The government is encouraging PSUs to unlock value by listing subsidiaries.

• Retail inflows into mutual funds remain strong, making AMCs a proxy for India’s savings formalization.

• Recent listings like Canara Robeco AMC have reinforced investor appetite for the sector.

Risks to watch

• Lower fee yield: A large passive and debt AUM base means lower margins versus equity-heavy peers.

• Market timing: Budget-related volatility and currency moves could impact sentiment around filing.

• OFS structure: IPO proceeds go to selling shareholders, not into the company for growth.

Bottom line

The SBI Mutual Fund IPO is a classic trade-off. Investors get scale, brand, and distribution that no other AMC can match. In return, they accept lower profitability per rupee of AUM compared with private peers.

If you value stability and reach, SBI MF looks compelling. If margins and efficiency matter more, listed peers may still look sharper.