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Mumbai: The Indian capital market is set for a major expansion in its financial services segment as two of the country’s largest fund houses, SBI Mutual Fund (SBI MF) and ICICI Prudential Mutual Fund (ICICI Pru MF), progress with their Initial Public Offering (IPO) plans. This dual listing push underscores the robust growth and increasing financialisation of savings in the Indian economy.
SBI Mutual Fund: India’s Largest AMC Aims for 2026 Debut
SBI Funds Management Limited (SBIFML), the Asset Management Company (AMC) jointly promoted by the State Bank of India (SBI) and Amundi India Holding, is gearing up for a mega IPO, which is expected to be completed in 2026.
- Issue Size and Stake Sale: The IPO will comprise a total divestment of 10.0013% of the company’s equity capital.
- SBI will divest 3.206 crore shares (approximately 6.3% stake).
- Amundi India Holding, the French partner, will sell 1.883 crore shares (approximately 3.7% stake).
- Target Valuation: SBI is reportedly seeking an ambitious valuation of around ₹1 lakh crore for SBIFML, highlighting the company’s market leadership and strong profitability.
- Post-IPO Ownership: Despite the sale, SBI will retain a majority stake, and SBIFML will become the third listed subsidiary of the banking giant, following SBI Cards and SBI Life.
- Market Dominance: SBIFML is the largest AMC in India by market share, managing a Quarterly Average Assets Under Management (QAAUM for Q2 FY26) of ₹11.99 trillion under its various mutual fund schemes. This leadership position, backed by SBI’s powerful distribution network and Amundi’s global expertise, is a key driver for its high valuation.
- Management View: SBI Chairman Challa Sreenivasulu Setty noted that the listing is an “opportune time” to launch the IPO process, aiming to maximise value realisation for stakeholders and broaden market participation for the general public.
ICICI Prudential Mutual Fund: OFS Filed with SEBI
Meanwhile, ICICI Prudential Asset Management Company (IPAMC), a joint venture between ICICI Bank and UK-based Prudential Plc, is also advancing with its public issue.
- DRHP Filing: IPAMC filed its Draft Red Herring Prospectus (DRHP) with SEBI on July 8, 2025.
- Issue Structure: The proposed issue is a pure Offer for Sale (OFS) of up to 1.765 crore shares (post-bonus, up to 4.94 crore shares) by the promoter Prudential Corporation Holdings Limited (PCHL). This means the company itself will not raise fresh capital; the proceeds will go to the selling shareholder.
- Estimated Fundraise: The OFS is expected to raise up to ₹10,000 crore, with the shares proposed to be listed on the BSE and NSE.
- Strong Financials: IPAMC is a leading AMC, reporting a strong Profit After Tax (PAT) of ₹2,650.7 crore in FY25, showcasing consistent profitable growth.
Broader Market Implications
The entry of these large fund houses into the listed space is seen as a significant structural development. It will:
- Increase Sectoral Liquidity: Provide investors with more high-quality options to invest directly in the rapidly growing Indian asset management industry.
- Validate Growth Story: Reaffirm the market’s confidence in the long-term growth potential of India’s mutual fund sector, driven by the increasing shift of household savings from traditional physical assets to financial instruments.
- Enhance Transparency: IPOs mandate higher levels of corporate governance and financial transparency, which is beneficial for the entire sector.
The simultaneous public issues by two behemoths signal a boom in the financial services segment, making the coming year a landmark period for the Indian primary market.
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