The Indian stock market has seen many multibagger returns in history, but the profits made by the country’s largest public sector bank, State Bank of India, are completely unimaginable. With the upcoming IPO of SBI Funds Management (SBI Mutual Fund), the country’s largest public sector bank is going to earn such earnings which has surprised the big tycoons of Dalal Street. The bank is now going to get a mind-blowing profit of 3,82,567 percent on just ’15 paise bet’ placed years ago. On the other hand, Amundi India Holding is going to earn a huge profit. The company is going to make a profit of around Rs 4200 crore from this IPO. Let us also tell you by which mathematics SBI and Amundi India Holding are going to earn huge income from the IPO of SBI Funds Management.
How much profit will SBI make?
India’s largest lender, State Bank of India (SBI) is set to get a return of approximately 3,82,567 percent on its initial investment. Whereas Amundi India Holding will gain 13,095 percent. These two promoter shareholders are preparing to earn a total profit of Rs 11,658 crore through the Initial Public Offering (IPO) of SBI Funds Management (SBI Mutual Fund). This is the biggest Indian IPO of 2026 so far.
SBI Funds Management Ltd, a subsidiary of State Bank of India, on Thursday announced a price band of Rs 545 to Rs 574 per share for its Rs 11,693 crore IPO. At the upper end of the price band, SBI’s stake (which was bought at an average cost of just 15 paise per share) would fetch gross proceeds of Rs 7,366.39 crore, resulting in a profit of approximately ₹7,364.47 crore. The total investment of SBI was approximately Rs 1.93 crore.
Amundi, which paid an average cost of Rs 4.35 per share, had invested Rs 32.79 crore. In comparison, the company will earn gross earnings of Rs 4,326.52 crore from the IPO. In which there will be a profit of approximately Rs 4,293.73 crore.
how much stake is being sold
This eagerly awaited IPO is entirely an Offer for Sale (OFS) of more than 20 crore shares, in which there is no new issue of equity. This means that SBI Funds Management itself will not get any money from this offering. SBI plans to sell 128.3 million shares (ie about 6.3 per cent of the company), while Amundi will sell 75.4 million shares (ie about 3.7 per cent). Overall, both the promoter-sellers are selling a little less than 10 per cent of the paid-up equity share capital of SBI Funds Management through this offer. At the upper end of the price band, SBI Funds Management is valued at around Rs 1.17 lakh crore by market capitalisation. The IPO will open on 14th July and close on 16th July.
How big is SBI Mutual Fund?
According to the company’s Red Herring Prospectus (RHP) citing CRISIL report, SBI Funds Management is India’s largest asset management company in terms of quarterly average assets under management (QAAUM) of mutual funds. As of March 31, 2026, its market share was 15.3 percent and between March 31, 2024, and March 31, 2026, its mutual fund QAAUM has increased at a CAGR (Compound Annual Growth Rate) of 16.97 percent.
As of March 31, 2026, the company’s total mutual fund QAAUM was Rs 12,509.98 billion, which was Rs 10,729.49 billion a year ago. At the same time, its total QAAUM including portfolio management service, advisory and alternative investment fund business was Rs 29,461.05 billion. According to RHP, the company has the lowest operating expense ratio among the top 10 AMCs of India. Operating expenses for FY26 were 0.08 per cent of QAAUM, while for the rest of the top 10 companies the range was between 0.10 per cent and 0.25 per cent.
The biggest strength of SBI Mutual Fund
The scope of SBI Mutual Fund is based on the combined strengths of its two promoters. Which includes State Bank of India (SBI), which has been described as India’s largest commercial bank in RHP and Amundi SA, which is Europe’s largest asset manager company, which is headquartered in Paris and which is listed on Euronext Paris. According to the RHP, up to 2,987,076 equity shares have been reserved for eligible employees of SBI Funds Management and up to 13,055,629 equity shares for eligible shareholders of SBI in this offer. The issue is being managed by 9 book-running lead managers Kotak, Axis Capital, BofA, HSBC, I-Sec, Jefferies, JM Financial, Motilal Oswal and SBICAPS.
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