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Kolkata: The mutual fund industry is on a roll. ICRA Analytics has projected that the AUM (assets under management) of the Indian mutual fund industry is set to sail past Rs 300 lakh crore in the next 10 years, quite a leap from the November 2025 AUM of about 81 lakh crore. Agai9nst this backdrop, a pubic issue from the biggest AMC of the country (by AUM), which is backed by the biggest bank in the country, is almost certain to unleash frenzy among investors.
SBI chairman C S Setty has told a newspaper that they want to complete the IPO of SBI Mutual Fund in 2026. “Our focus is on completing the IPO of SBI Mutual Fund within 12 months. No plans for other IPOs or stake sales,” Setty has been quoted as saying. Setty is also the chairman of SBI Funds Management.
The immediate benchmark that comes to mind, is the ICICI Pru AMC IPO that was pulled off in spectacular fashion. The public issue was subscribed a massive 39.17 times overall -- 2.53 times in the retail category, 123.87 times in QIB (Ex Anchor) category and 22.04 times in the NII category. The success becomes all the more remarkable when the size of the issue is considered -- Rs 10,602.65 crore. In other words, investors committed nothing less than Rs 4.15 trillion at the ICICI Pru AMC IPO. The bidding process of the issue was open from Dec 12 and Dec 16.
Setty revealed that they have begun the process for the appointment of merchant bankers for the IPO. The boards of SBI and Amundi, the shareholders of SBI MF as well as the board of SBI Funds Management have given their nod for the issue to be wrapped up in 12 months. "We are very seriously working on that, and in this timeline we should hit the market...we have started the process of identifying the merchant bankers and other service providers," Setty was also quoted as saying.
According to reports, the two promoters of SBI MF will offload a total of 10% through the IPO. In Nov, SBI gave its nod to sale of 3,20,60,000 equity shares, or 6.3% of the equity capital of SBIFML. Amundi India Holding is expected to divest 1,88,30,000 equity shares, which comprises 3.70% of the total equity capital of the AMC company.
Size and trust: The name SBI is synonymous with trust. SBI MF commands a lot of heft. It is India's largest AMC and the parentage of SBI gives it immense credibility and trust.
Wide distribution: SBI MF has a very wide reach, thanks to the SBI's branch network and huge customers of both the AMC and the bank.
Product basket: It has got funds in every mutual fund product category -- equity, debt, hybrid, tax-saving, ETF that addresses all types of investors.
Fund management: Veteran professionals and established risk management frameworks are highlights of the AMC.
Performance: Some of its funds are top-performers in different categories.
(Disclaimer: This article is only meant to provide information. TV9 does not recommend buying or selling shares or subscriptions of any IPO, Mutual Funds, precious metals, commodity, REITs, InvITs and any form of alternative investment instruments and crypto assets.)
