India's largest asset manager SBI Mutual Fund files DRHP for IPO. Check details

Synopsis

SBI Mutual Fund, India's largest asset manager, has filed for an IPO. The offering is entirely an offer for sale by its promoters, State Bank of India and Amundi India Holding. This move aims to provide liquidity to existing shareholders. The company manages significant assets and has a strong market share. Financial performance shows consistent growth and high profitability.

SBI Mutual Fund, India's largest asset management company, has filed its draft red herring prospectus (DRHP) with market regulator Sebi for an IPO, which will be entirely an offer for sale (OFS) by its promoters. The offer will see the sale of up to 20.37 crore equity shares of face value Re 1 each, with no fresh issue component, implying that the company will not receive any proceeds.

State Bank of India, the promoter, will offload up to 12.83 crore shares, while Amundi India Holding will sell up to 7.53 crore shares as part of the OFS. The weighted average cost of acquisition stands at Rs 0.15 per share for SBI and Rs 4.35 per share for Amundi. The total issue size in rupee terms has not yet been disclosed.

SBI Mutual Fund operates as the investment manager to its flagship mutual fund business and also offers portfolio management services (PMS), alternative investment funds (AIFs) and offshore advisory services.

The company serves over 1.6 crore unique investors as of December 2025 and manages mutual fund average assets under management (MAAUM) of Rs 6,06,139 crore, accounting for 48.05% of total mutual fund MAAUM.

It holds a 15.4% market share by QAAUM, making it the largest AMC in India. The firm also dominates adjacent segments, with a 39% market share in PMS and 61% in specialised investment funds. Its SIP franchise remains one of the strongest in the industry, with 1.57 crore live SIPs, reflecting deep retail penetration.

The AMC benefits from a dual-parent structure, combining SBI’s extensive domestic distribution network with Amundi’s global asset management expertise.

Financial performance

SBI Mutual Fund has reported strong and consistent financial growth over recent years. For the nine months ended December 2025, the company reported revenue from operations of Rs 3,251 crore and profit after tax of Rs 2,433 crore.

For FY25, revenue stood at Rs 3,598 crore, while profit after tax came in at Rs 2,540 crore, reflecting high profitability and operating leverage in the asset management business.

The company operates a debt-free balance sheet and has maintained robust return ratios, with return on net worth at 33.77% in FY25. Net worth stood at Rs 72,720 crore as of December 2025.

IPO structure and positioning

Given that the issue is entirely an OFS, the listing is primarily aimed at providing liquidity to existing shareholders and unlocking value, rather than raising growth capital. The proposed listing comes at a time when India's mutual fund industry continues to see strong inflows, driven by rising retail participation, SIP growth and financialisation of savings.

The IPO is expected to draw strong institutional and retail interest given SBI Mutual Fund's dominant market position, strong profitability and scalable business model.

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