SBI Funds Management, India’s largest asset management company (AMC), is reportedly preparing for an initial public offering (IPO) expected to raise around $1.2 billion, according to sources cited by Reuters.

The IPO is expected to hit the markets in the first half of 2026, with the State Bank of India (SBI) and France’s Amundi Asset Management anticipated to dilute their stakes in the company through an Offer for Sale (OFS).

SBI Funds Management currently manages assets worth over ₹10.5 lakh crore, making it the country’s top fund house. The public listing aims to unlock value for shareholders and strengthen SBI’s capital position ahead of growing competition in the mutual fund space.

If completed, this IPO could rank among India’s largest financial sector listings, following the strong investor interest seen in Tata Capital’s proposed issue and HDFC AMC’s earlier success in the public market.