GIC backs India’s top asset manager IPO

By Lauren Campbell 07/07/2026 3 min read 11 views

SBI Funds Management is set to launch a US$1.2 billion IPO that will draw backing from two of the world’s biggest sovereign wealth funds, the Abu Dhabi Investment Authority (Adia) and Singapore’s GIC, according to two sources with direct knowledge of the deal.

Investors watch closely.

Details of the offering

The joint venture, created by State Bank of India (SBI) and French asset manager Amundi, oversees assets worth about 12.5 trillion rupees (roughly US$131 billion) as of the end of March 2026. The IPO is expected to value the firm at around US$12.3 billion.

SBI and Amundi together will offload a total of 10 percent of their holdings in the venture as part of the share sale. The offering is slated to open next week, positioning it as the largest Indian IPO since early 2026.

According to the sources, institutional investors have already pledged commitments close to five times the portion of shares earmarked for them. Yet the prospectus reserves half of the total offer for individual investors, a move that could broaden participation beyond the large‑cap funds.

Market context and pipeline

India’s capital markets are gearing up for a busy second half of the year. The National Stock Exchange and Reliance Jio are both expected to list later in 2026, with projected sizes of US$3.3 billion and US$3.8 billion respectively. In addition, Manipal Health Enterprises and Indo‑MIM have filed for offerings of US$1.2 billion and US$471 million.

Prime Database tracks 251 companies planning to raise about 4.93 trillion rupees (US$51.7 billion) in the coming months. The surge in listings follows a slowdown that began after the 2025 Iran conflict pushed oil prices up and dampened investor sentiment toward a region heavily dependent on imported fuel.

In 2025, Indian firms raised US$21.8 billion through IPOs. So far in 2026, that figure stands at US$3.8 billion, indicating a modest rebound. Analysts say the success of upcoming mega‑listings will hinge on whether foreign investors, who have sold roughly US$29 billion of Indian equities this year, continue to return to the market.

While the sovereign investors’ involvement adds a layer of credibility, the overall appetite for Indian equity offerings remains tentative. One managing director at a leading investment bank noted that “a lot of heavy lifting (US$8 billion to US$9 billion) will be done by three to four large IPOs that are in the pipeline.”

Compared with previous years, the current wave of offerings appears more diversified, with both domestic and foreign institutions playing significant roles. The presence of Adia and GIC mirrors a broader trend of sovereign funds seeking exposure to high‑growth markets, a shift from their historically defensive posture.

The filing notes that both SBI Funds Management and the two sovereign investors declined to comment, and SBI did not respond to a request for comment. If the IPO proceeds as planned, it could set a benchmark for future listings and signal renewed confidence in India’s asset‑management sector.