SBI Funds Management ropes in Citi, HSBC for $1.4 bn IPO

SBI Funds Management, jointly owned by State Bank of India and France-based Amundi, is moving ahead with plans to tap the capital markets. The partners had announced last year their intention to sell a combined 10% stake through an initial public offering.

According to sources familiar with the matter, SBI Funds Management Ltd. has appointed nine investment banks to advise on its proposed IPO, which could raise around $1.4 billion in the first half of 2026. The share sale could value India’s largest asset manager at approximately $14 billion.

The banks selected for the mandate include Kotak Mahindra Capital, Axis Bank, SBI Capital Markets, Motilal Oswal Investment Advisors, ICICI Securities, JM Financial, along with Indian units of Citigroup, HSBC and Bank of America. Sources said the appointments are expected to be formally finalized soon, though discussions are still ongoing and the final structure of the offering may change.

State Bank of India, Amundi, SBI Funds Management and the advising banks declined to comment on the development.

The planned IPO comes close on the heels of a strong market debut by ICICI Prudential Asset Management last month. India’s second-largest fund house raised $1.2 billion in its IPO, which was subscribed more than 39 times, and is currently valued at around $14 billion.