SBI Fund Management, India’s largest asset manager is racing to file its Draft Red Herring Prospectus (DRHP) by the end of March for its planned ₹13,000 crore initial public offering. Missing this deadline could lead to significant delays, as the company may be required to conduct a fresh audit incorporating the latest financial data.The IPO, which seeks a valuation of about ₹1.3 lakh crore, will be structured entirely as an Offer for Sale (OFS). This means the company itself will not receive any proceeds from the issue. Instead, its parent, State Bank of India, plans to sell around 6.3% of its stake, potentially raising more than ₹8,000 crore. The firm’s joint venture partner, Amundi Asset Management, is also expected to reduce its holding and could generate nearly ₹5,000 crore from the sale.

The filing was initially scheduled for late February but was postponed due to an extensive audit process. If the DRHP is not filed before the March deadline, regulatory requirements could force the company to update its financial statements, delaying the IPO timeline.In terms of valuation, the asset manager is targeting a price-to-earnings multiple of around 51x, slightly higher than its listed peer, ICICI Prudential Asset Management Company. However, shares of the company are reportedly trading in the unlisted market at a valuation of approximately ₹1.5 lakh crore.

To handle the public issue, the company has appointed several merchant bankers, including Bank of America, HSBC, and Kotak Mahindra Capital Company. The firm also plans to keep IPO-related expenses under ₹75 crore, nearly half the amount spent during the listing of ICICI Prudential AMC.Legal advisory for the issuer is being provided by Cyril Amarchand Mangaldas, while Shardul Amarchand Mangaldas & Co. is representing the investment banks involved in the transaction.