SBI Funds Management is preparing for a potential IPO that could raise around $1.4bn, as private equity and strategic shareholders look to capitalise on strong equity market conditions in India, according to Bloomberg.

The asset manager, which is jointly owned by State Bank of India and Amundi, has hired nine banks, including Citi and HSBC, to advise on the offering. The transaction could value the business at about $14bn, according to people familiar with the matter.

The shareholders plan to sell a combined 10% stake through the IPO, which is expected to take place in the first half of 2026. Deliberations are ongoing, and the details of the offering could still change.

The move follows a strong period for Indian listings. Companies raised about $22.4bn through IPOs in 2025, surpassing the previous record and reinforcing investor appetite for financial services assets.

The planned offering underlines growing exit optionality for private equity-backed and institutionally owned asset managers as capital markets reopen.

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