SBI Funds Management Ltd., the dominant force in India’s asset management landscape, is moving toward a public listing with a planned initial public offering (IPO) expected to launch before September 2026. The firm is reportedly targeting a valuation of **$14 billion to $15 billion**, positioning it as a significant heavyweight in the financial services sector. This valuation places it just behind ICICI Prudential AMC, which currently holds a market capitalization of approximately **$17.7 billion (₹1.48 lakh crore)** as of mid-February 2026. Offering Structure and Capital The IPO is projected to raise between **$1.4 billion and $1.5 billion (₹12,500 crore – ₹15,700 crore)**. The issue is expected to be primarily an Offer for Sale (OFS), as the company maintains a robust capital position. Promoters State Bank of India (SBI) and Amundi Asset Management aim to offload a combined **10% stake**. Specifically, SBI is slated to sell **6.3%** of its holdings, while Amundi will divest **3.7%**. SBI leadership has clarified that no fresh capital infusion is required for the bank’s credit growth through 2030, given its strong capital-to-risk-weighted assets ratio of **15%**. Market Context and Sector Trends The listing comes at a pivotal moment for the Indian mutual fund industry. Total assets under management (AUM) reached a record **₹81.01 lakh crore** in January 2026, marking a **20.5%** year-on-year increase. * **Retail Momentum:** SIP inflows hit an all-time high of **₹31,002 crore** in January 2026. * **Asset Shift:** The AUM-to-bank deposit ratio has climbed to **32.6%**, nearly tripling over the last decade. * **Passive Growth:** Passive fund AUM surged **38%** over the past year, now accounting for **19%** of the total industry AUM. Strategic Outlook SBI Funds Management continues to lead with an AUM exceeding **₹12.5 trillion**. The firm is leveraging its extensive distribution network of over **22,000 SBI branches** to deepen penetration in Tier-II and Tier-III cities. While the IPO is set to unlock significant value, the market remains selective. Investors are closely watching fee structures and the impact of new SEBI regulations on expense ratios, effective April 2026, which may influence long-term margin stability for the sector.