SBI Funds Management draws top sovereign funds in $1.2 billion IPO

SBI Funds Management, the country’s biggest asset manager, plans to secure investments from Abu Dhabi Investment Authority (ADIA) and Singapore’s GIC for its $1.2 billion IPO, according to two sources familiar with the deal.

SBI Funds Management, a joint venture of State Bank of India, the nation’s leading bank, and Europe’s top asset manager Amundi, oversaw assets amounting to ₹12.5 lakh crore at the close of March 2026.

Sources indicate the venture could be valued near $12.3 billion, with SBI and Amundi together offloading a 10 % stake in the joint venture through the offering.

Expected to launch next week, the IPO will spark a flurry of public offers in India’s second‑half calendar, ahead of anticipated mega listings from Reliance Jio and the National Stock Exchange before year‑end 2026.

SBI Funds Management, GIC, Amundi and ADIA declined to comment, while SBI did not reply to an emailed inquiry.

PRIME Database, a capital‑markets data provider, notes that 251 firms aim to raise ₹4.93 trillion (about $51.7 billion) and are awaiting market debut.

The IPO for SBI Funds Management is attracting strong interest from big domestic institutional players as well as leading foreign investors from Singapore and the Middle East, sources said.

“Commitments for the offering are approaching five times the amount set aside for institutional investors,” one source remarked.

Even with robust institutional interest, the fund house intends to allocate half of the offering to retail investors, the source added.

IPO PIPELINE REVITALIZES

SBI Funds Management’s public offering is poised to become India’s biggest IPO since early 2026, following the Iran‑war‑driven oil price surge that dampened sentiment in the fuel‑import‑reliant South Asian economy.

Additional listings slated for this month comprise a $1.2 billion issue from Manipal Health Enterprises and a $471 million offering from Indo‑MIM, according to two merchant‑banking sources distinct from those previously quoted.

The National Stock Exchange of India (NSE) and Reliance Jio IPOs, estimated at $3.3 billion and $3.8 billion respectively, are slated to launch later this year.

“While the marquee IPOs scheduled for this month are attracting interest, their reception and eventual listing will determine the outlook for the remaining larger deals in the pipeline,” said Suraj Krishnaswamy, managing director and head of investment‑banking coverage at Axis Capital.

Indian companies garnered $21.8 billion through IPOs in 2025, and have collected $3.8 billion so far in 2026.

A resurgence in large‑scale IPOs will likewise hinge on renewed foreign appetite for Indian stocks. Overseas investors have offloaded $29 billion of shares in the secondary market this year, though the selling pressure has eased and they are taking a fresh look at India, Reuters noted last month.

“We stay optimistic about achieving a $20 billion IPO raise this year, even with a weak first half. However, the bulk of that — roughly $8 billion to $9 billion — will likely come from three to four sizable IPOs already in the pipeline,” said Bhavesh Shah, managing director and head of investment banking at Equirus.

Published on July 7, 2026