SBI Mutual Fund Begins Hiring Merchant Bankers for Upcoming IPO; check for Key Details

India’s largest asset manager is finally stepping into the public-market spotlight. SBI Mutual Fund has initiated the process of appointing merchant bankers, a formal signal that the long-anticipated SBI mutual fund IPO has moved from intent to execution. 

Over the past week, the asset manager has begun formally appointing merchant bankers and other service providers, the first concrete step in what company insiders describe as a 12-month timeline to take the firm public.

Strategic Partnership: How Amundi Became a Key Promoter

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Unlike many Indian IPOs driven by a single domestic promoter, SBI Mutual Fund is the product of a long-standing joint venture between the State Bank of India (SBI) and Amundi, the European asset management powerhouse. 

Amundi headquartered in Paris and one of Europe’s largest asset managers with over €2.2 trillion in assets under management brought international asset-management expertise and global best practices into the partnership. This collaboration has helped SBI Mutual Fund grow beyond its domestic roots, combine expansive distribution with global investment frameworks, and position itself as a market leader in India’s mutual fund industry. 

Today, SBI holds roughly 61.98% of the company, while Amundi holds 36.40% through its wholly owned subsidiary Amundi India Holding, with a small remainder held by other investors.

The move follows board approvals at the promoter level to pare a portion of stakes and test investor appetite for one of the country’s most-watched asset-management listings. SBI and Amundi plan to offer roughly 10% of SBI Funds Management to the market with SBI putting up about 6.3% and Amundi about 3.7% through an offer-for-sale structure, according to exchange filings and company announcements. That packaging keeps the company’s operating control firmly with existing promoters while unlocking value through a market price discovery process.

Why the merchant-banker call matters

In IPO journeys, hiring merchant bankers is where seriousness begins. It triggers forensic due diligence, regulatory preparation, and the earliest valuation conversations. For SBI Mutual Fund, this step indicates that the promoters State Bank of India and Amundi are confident enough about market conditions and internal readiness to move ahead.

Given the scale of operations and regulatory sensitivity around asset management businesses, the bankers’ role will be critical. They will shape the draft red herring prospectus (DRHP), determine the optimal offer-for-sale structure, and anchor institutional demand. For investors tracking the sbi mutual fund IPO, this phase will define the contours of the listing more than any headline valuation number.

Market Leadership and Competitive Standing

One of the key and major reasons why the SBI mutual fund IPO is enthusiastically anticipated is the scale size and market position the company commands and holds. As of September 2025, SBI Mutual Fund managed and represented around ₹12 lakh crore in assets, encompassing both traditional mutual funds and alternate investments. 

This translates into a market share of about 15.55%, the largest of any asset manager in India, making it the undisputed leader in a rapidly expanding mutual-fund and growing landscape. 

Such scale matters. In a business where recurring fee income, net inflows, and investor trust drive long-term profitability, leading market share provides structural advantages over peers, especially in buoyant equity markets and rising SIP flows.

What the unlisted market is already signalling

Even before formal IPO pricing, the unlisted market has been actively tracking SBI Mutual Fund. Recent transactions indicate an SBI Mutual fund share price of around ₹2,429 per share, reflecting strong demand and high expectations from investors ahead of the IPO.

This price level suggests that the market is already discounting:

• Leadership position in AUM

• Strong parentage and distribution strength via SBI

• Consistent profitability and operating leverage

• Brand credibility and low business risk relative to peers

However, it’s important to note that unlisted prices are indicative, not definitive. Once the DRHP is filed, valuation will be tested against listed peers, growth assumptions, and regulatory headwinds.

How the market may value SBI Mutual Fund

From an analytical perspective, SBI Mutual Fund’s valuation will be assessed against listed peers such as HDFC AMC and Nippon Life India AMC. Key drivers will include:

• Consistency of net inflows across market cycles

• Mix between active and passive products

• Margin sustainability amid fee pressure

• Growth in retail participation via SIPs

At an unlisted SBI Mutual fund share price of ₹2,429, the implied valuation already places the company in the upper band ofM of AMC multiples. The final IPO pricing will need to strike a balance—rewarding quality while leaving room for long-term compounding.

Conclusion

SBI Mutual Fund kicks off IPO and the price discovery has already begun with Merchant-banker hunt signals a 12-month sprint to market. 

SBI mutual fund IPO is now visible, structured, and time-bound. The unlisted SBI Mutual fund share price of ₹2,429 shows that expectations are already high but the real test will come when institutional investors weigh growth certainty against valuation comfort.