SBI Funds Management's RHP sets out maiden all-OFS public offer
India's largest asset manager by mutual fund AUM has its maiden IPO on SEBI's record: a pure offer for sale by State Bank of India and Amundi India Holding, per the red herring prospectus.
The Development
State Bank of India and Amundi India Holding have placed the maiden public offer of SBI Funds Management Limited, the investment manager to SBI Mutual Fund, on the official record. The red herring prospectus (RHP), dated 8 July 2026, is filed with the Securities and Exchange Board of India and sets out an offer structured entirely as an offer for sale by the two promoter selling shareholders. Per the RHP, the company itself will not receive any proceeds from the offer.
Per the offer document's bid and offer programme, the anchor investor allocation was scheduled for Monday 13 July 2026, the offer opened on Tuesday 14 July 2026 and closed on Thursday 16 July 2026. With that three-day book-building window now concluded, the sequence moves to the basis of allotment and to listing on the BSE and the NSE, where the equity shares are proposed to be listed and the NSE is the designated stock exchange.
This development was surfaced through markets coverage in Mint; every figure below is drawn from the offer document filed with SEBI.
The Company
SBI Funds Management is the investment manager to SBI Mutual Fund. Per the RHP, it is India's largest asset management company by quarterly average mutual fund assets under management (QAAUM), with a mutual fund QAAUM of Rs 12,509.98 billion and a 15.3% market share as of 31 March 2026. The company discloses a total QAAUM across mutual funds, portfolio management and alternatives of Rs 29,461.05 billion, a unique investor base of 18.00 million, and a network of 277 branch offices across India.
On financials, the company discloses revenue from operations of Rs 43,894.88 million (about Rs 4,389 crore) for the year ended 31 March 2026, up from Rs 35,977.57 million in FY2025 and Rs 26,905.58 million in FY2024. Profit after tax was Rs 30,673.76 million (about Rs 3,067 crore) for FY2026, against Rs 25,401.54 million and Rs 20,727.85 million in the two preceding years. Per the RHP, return on net worth was 43.02% for FY2026, basic earnings per equity share (after a three-for-one bonus issue in December 2025) was Rs 15.08, and total borrowings were nil.
The promoters are State Bank of India, Amundi India Holding and Amundi Asset Management. Per the RHP, State Bank of India held 61.73% and Amundi India Holding 36.26% of the company on a fully diluted basis ahead of the offer.
The Offer Structure
The offer is a pure offer for sale of up to 203,709,239 equity shares of face value Rs 1 each, per the RHP. State Bank of India is offering up to 128,334,397 equity shares and Amundi India Holding up to 75,374,842 equity shares. Because the offer is entirely secondary, the stated objects are to carry out the offer for sale and to achieve the benefits of listing; the company will not receive the offer proceeds.
The red herring prospectus carries the floor, cap and offer prices as placeholders, which were fixed in the separate price band advertisement ahead of the opening; the final price band, lot size and rupee issue size are recorded by the exchanges. Per the RHP, the book running lead managers are Kotak Mahindra Capital, Axis Capital, BofA Securities India, HSBC Securities and Capital Markets (India), ICICI Securities, Jefferies India, JM Financial, Motilal Oswal Investment Advisors and SBI Capital Markets, with SBI Capital Markets involved only in marketing as an associate of the company. KFin Technologies is the registrar to the offer. Readers working through the arithmetic of a possible allotment can use Oquilia's lumpsum calculator or CAGR calculator, and prior primary-market reporting sits on the Oquilia news desk.
Risk Factors
The RHP lists ten principal internal risk factors, reported here as the company itself discloses them. The company discloses that its revenues are directly linked to assets under management: management fees made up 96.47% of its FY2026 revenue from operations, so any material decline in QAAUM through market movements or redemptions could weigh on results, given a largely fixed short-term cost base.
Among the risks the company discloses is scheme concentration: as of 31 March 2026 its top five schemes accounted for 42.57% of mutual fund QAAUM and its top ten schemes for 59.47%. The RHP also flags fee compression, noting the Base Expense Ratio framework and lower total-expense-ratio caps under the SEBI (Mutual Funds) Regulations, 2026 effective 1 April 2026, alongside the growth of lower-fee passive schemes, which it says represented Rs 4,055.26 billion, or 32.42% of mutual fund QAAUM.
On regulation, the RHP discloses that over the last three years the company received letters from SEBI in the ordinary course, resulting in administrative warnings and observations, and that a voluntary settlement application of Rs 0.30 million filed by a fund managed by a subsidiary is pending before SEBI. The company also discloses a dividend-sustainability risk, noting that higher payouts in FY2026 contributed to net worth declining from Rs 82,975.33 million to Rs 59,630.62 million despite the year's profit after tax.
What Happens Next
The standard sequence from here runs from the close of the book-building window to the finalisation of the basis of allotment, then to refunds and the unblocking of ASBA and UPI application amounts, and finally to listing and the start of trading on the exchanges.
The basis of allotment is finalised in consultation with the designated stock exchange, the NSE, after which the registrar, KFin Technologies, processes allotments and unblocking. The final subscription figures, the allotment outcome and the listing date are published by the BSE and the NSE. These are process steps set out in the offer document and the exchange framework, not a prediction of demand or price.
FAQ
Should I apply for this IPO?
Oquilia does not make recommendations. This report is informational and is not investment advice or a recommendation to subscribe. The RHP, including the complete risk-factors section, is available on SEBI's website and the exchanges - read it directly before making any decision.
What is the offer structure?
Per the RHP, the offer is a pure offer for sale of up to 203,709,239 equity shares of face value Rs 1 each: State Bank of India offering up to 128,334,397 shares and Amundi India Holding up to 75,374,842 shares. The company receives no proceeds.
What does SBI Funds Management do?
It is the investment manager to SBI Mutual Fund and, per the RHP, India's largest asset management company by quarterly average mutual fund AUM, with a mutual fund QAAUM of Rs 12,509.98 billion as of 31 March 2026.
When did the offer open and close?
Per the RHP, the anchor allocation was on 13 July 2026, the offer opened on 14 July 2026 and closed on 16 July 2026. The basis of allotment and listing on the BSE and NSE follow, with figures published by the exchanges.
Where can I read the RHP?
The red herring prospectus dated 8 July 2026 is on SEBI's website under Filings, Public Issues, and on the BSE and NSE websites. It contains the full financials, the objects of the offer and the risk-factors section.
This report is based on the red herring prospectus filed with SEBI by SBI Funds Management Limited. It was surfaced via markets coverage in Mint.