SBI Mutual Fund IPO buzz: Unlisted shares zoom 3x in 3 yrs; Rs 1.25 lakh cr valuation eyed

SBI Mutual Fund unlisted share price: IPO-bound SBI Mutual Fund is said to be gearing up for an investor roadshow ahead of its much-awaited initial public offering (IPO), according to a report by ET Now. However, the stock has managed to hold its ground in the unlisted market after delivering multibagger returns to investors over the last few years.

Unlisted shares of SBI Mutual Fund are currently trading around Rs 750–775 apiece, suggesting a total market capitalisation between Rs 1.52 lakh crore and Rs 1.57 lakh crore. The stock has nearly tripled investors’ wealth over the last three years from its adjusted price of around Rs 245–250 apiece. It is also up 20 per cent over the past one year.

Jasbir Singh, CEO of Pune-based Meera Associates, a firm dealing in pre-IPO shares, said the IPO is likely to be launched below the current unlisted price. However, considering its strong performance and parentage, it is expected to command premium valuations. “The recent dent in SIP inflows may have made sentiment a bit cautious for the time being, but prices are likely to normalise once the market rebounds.”

For the nine months ended March 31, 2025, SBI Mutual Fund reported a net profit of Rs 234.3 crore and revenue from operations of Rs 3,883.24 crore. To recall, shares of SBI Mutual Fund traded ex-bonus in a 3:1 ratio on December 18, 2025. It is expected to make its Dalal Street debut in the second half of 2026.

Umesh Paliwal, Co-founder of Delhi-NCR-based UnlistedZone, said SBI Mutual Fund is commanding a scarcity premium in the unlisted market due to a supply-demand mismatch. “It will be competing with peers like HDFC AMC and ICICI Prudential AMC, but its current valuations are comparatively expensive relative to them,” he said.

The asset management company is a joint venture between the country’s largest lender, SBI, and French asset manager Amundi, both of which are likely to offload stakes in the mutual fund sponsor in the proposed offering. The move marks a significant step for India’s largest mutual fund company.

SBI Funds Management filed its draft papers (DRHP) with the Securities and Exchange Board of India (SEBI) in March 2026. The company is likely to raise $1.3 billion (around Rs 12,000–12,500 crore), valuing SBI Funds at $13 billion (Rs 1.2–1.25 lakh crore). However, neither of the promoters has made any official announcement regarding the issue.

SBI Mutual Fund is preparing for its IPO with around 16 million unique investors and strong SIP flows, indicating solid fundamentals, said Navy Vijay Ramavat, Managing Director at Indira Securities. He expects strong performance from this mega issue if priced reasonably. “It all comes down to valuation, and if priced correctly, it could see bumper demand,” he added.

Kotak Investment Banking, Axis Capital, BofA Securities, HSBC Securities (India), ICICI Securities, Jefferies, JM Financial, Motilal Oswal, and SBI Capital Markets are the lead managers for the issue, while KFin Technologies is the registrar. The company’s shares are expected to be listed on both the BSE and NSE.

With no fresh issue component, the two promoters—SBI and Amundi—are looking to cumulatively offload up to 20.37 crore equity shares, or a 10 per cent stake in SBI Mutual Fund, through the IPO. SBI plans to divest about 6.3 per cent of its equity (12.83 crore shares), while Amundi will offer 3.7 per cent (7.54 crore shares), according to the DRHP.

SBI Funds Management manages assets worth nearly Rs 12.5 lakh crore, commanding more than a 15 per cent share of India’s mutual fund market. The firm traces its origins to 1987, when it began operations as one of the country’s earliest asset managers alongside Unit Trust of India. It offers investment solutions across various asset classes.

Post listing, SBI Mutual Fund will become the seventh asset management company to be listed on stock exchanges after Nippon Life India Asset Management Ltd, HDFC AMC, ICICI Prudential AMC, Aditya Birla Sun Life AMC, Canara Robeco AMC, and UTI Asset Management Company. ICICI Prudential AMC and Canara Robeco AMC made their stock market debut in FY26.