SBI Funds Management, India’s largest asset manager, is expected to begin formal marketing for its $1.5 billion IPO as early as next week, according to sources familiar with the matter.
The company plans to allocate around 75% of the issue to domestic investors, while also exploring a pre-IPO placement of up to $350 million, as part of its fundraising strategy.
SBI Funds is reportedly targeting a valuation of $13–15 billion, positioning it among the most valuable asset management firms in India. This compares with ICICI Prudential Asset Management, which currently has a market capitalisation of about $17.6 billion following its listing in December.
The company is in active discussions with investment bankers, and the final structure of the offering is still being finalised, with details subject to change.
According to the draft prospectus, SBI Funds has appointed a consortium of leading banks to manage the IPO, including Kotak Mahindra Capital, Axis Bank, SBI Capital Markets, JM Financial, and HSBC.
If completed, the IPO would mark one of the largest listings in India’s asset management sector, reflecting strong investor interest in the country’s growing mutual fund industry.
The move also comes amid rising participation from retail and institutional investors in India’s capital markets, making asset management firms increasingly attractive to public market investors.
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