SBI Funds Management taps Citi, HSBC for $1.4 billion IPO

SBI Funds Management is jointly owned by State Bank of India and Amundi. The partners said last year they plan to sell a combined 10% stake through an IPO.

SBI Funds Management Ltd. has hired nine banks to advise on a proposed initial public offering that may raise around $1.4 billion in the first half of 2026, according to people familiar with the matter.

India’s largest asset manager has selected Kotak Mahindra Capital Co., Axis Bank Ltd., SBI Capital Markets Ltd, Motilal Oswal Investment Advisors Ltd., ICICI Securities Ltd., JM Financial Ltd. and local units of Citigroup Inc., HSBC Holdings Plc and Bank of America Corp. to work on the share sale, the people said, asking not to be identified because the discussions are private. The appointments are expected to be formalized soon, and the company may be valued at about $14 billion, they said.

Deliberations are ongoing and the details of the offering could change, the people said.

State Bank of India Ltd., Amundi SA, SBI Funds Management and the banks declined to comment.

The planned offering follows a blockbuster debut last month by ICICI Prudential Asset Management Co., India’s second-largest fund house, which raised $1.2 billion in an initial public offering that was subscribed more than 39 times, and for which it hired a record 18 banks. ICICI Prudential AMC is currently valued at about $14 billion.

India was among the world’s busiest markets for new listings in 2025, with companies raising around $22.36 billion, surpassing the previous year’s record of $21 billion, data compiled by Bloomberg show.

SBI Funds Management is jointly owned by State Bank of India and Amundi. The partners said last year they plan to sell a combined 10% stake through an IPO.