All you need to about a SBI MF’s plan for a ₹13,000 crore IPO

SBI Fund Management Pvt. Ltd — India’s largest asset management company — is mulling filing a draft red herring prospectus (DRHP) for the initial public offering by the end of this month, according to the two people with direct knowledge of the matter.

“The target is to file it before the end of the financial year. If it spills over, it would mean December 2025 numbers get updated to March 2026 numbers. And invariably, auditing everything over again,” says one of the two persons cited above.

SBI Mutual Fund did not comment on queries sent by CNBC-TV18 on Tuesday.

A fresh audit process would delay the filing of the DRHP by two to three months. The fund house had earlier set a deadline of the end of February to file the DRHP, but the timeline slipped due to an extensive auditing process.

The company is eyeing a valuation of ₹1.3 lakh crore. Although SBI Mutual Fund shares are currently trading at a much higher valuation of around ₹1.5 lakh crore, the proposed valuation would imply a price-to-earnings multiple of 51x, marginally higher than rival ICICI Prudential AMC’s 50.4x.

At this valuation, SBI MF is looking at one of the largest financial services IPOs at around ₹13,000 crore. Only Tata Capital, One97 Communications, and Life Insurance Corporation (LIC) have had larger IPOs in the financial services space. The proposed issue size is almost 30% higher than that of its closest rival, ICICI Prudential AMC.

The IPO will be entirely in the form of an offer for sale (OFS), with both majority shareholders, State Bank of India and Amundi, planning to offload stakes. SBI is expected to sell 6.3%, which could fetch it over ₹8,000 crore.

French asset manager — Amundi — would be offloading less than ₹5,000 crore. There are nine merchant bankers to the deal, including Bank of America, Kotak and HSBC.

The fund house is planning to spend less than ₹75 crore on its IPO, which is almost half of what rival ICICI Prudential spent on its ₹150 crore odd IPO.