SBI Mutual Fund IPO: DRHP by March 2026; Shares likely to list by September - All you need to know

C S Setty, the chairman of India’s largest lender SBI, said on Friday, February 20, that SBI Mutual Fund is set to file its draft red herring prospectus (DRHP) for the initial public offering (IPO) by March, with the asset management company set to be listed by September.

SBI Mutual Fund IPO: Shares likely to list by September

In December 2025, according to a report by PTI, SBI Mutual Fund, the largest fund house in the country, has started the process of appointing merchant bankers and other service providers to aid in the IPO.

SBI’s chairman further added that the boards of the key shareholders, including SBI and Amundi, as well as the board of SBI Funds Management Ltd (SBIFML), have approved a 12-month timeline for the listing, as per an interview with PTI.

"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, who is also chairman of SBIFML, said.

SBIFML is a joint venture between State Bank of India and Paris-based Amundi, holding 61.98 per cent and 36.40 per cent stakes, respectively. As of September 2025, the fund house managed assets totalling approximately Rs 12 lakh crore.

SBI is holding talks with Japanese banks over a possible collaboration in the acquisition finance business, which was recently made accessible to Indian banks by the RBI.

On the sidelines of an IBA conference in Mumbai, Chairman C S Setty stated that SBI has the ability to lend up to Rs 94,000 crore to acquisition finance-seeking borrowers.

The Reserve Bank of India has released final guidelines on February 13, permitting banks to provide financing up to 75 per cent of a transaction while restricting aggregate exposure to 20 per cent of a bank’s core capital.

Setty further clarified that SBI has been working in partnership with foreign banks in the acquisition finance business and is also amenable to carrying out such business in foreign countries.

"We have been talking to Japanese banks mainly because they are active in that. But there is no preference for anyone," Setty said.

To start with, SBI will prefer to avoid complex acquisition finance transactions involving lots of instruments like mezzanine debt, etc., and stick to simple equity and debt finance.

Given the sensitivities and confidentiality involved, usually one or two lenders perform the underwriting of a transaction, and then the rest of the lenders join it, Setty said.

SBI will now be formulating the standard operating procedures on how to go about the newly allowed business and get it ratified by the board before going ahead, he said.

(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)