MUMBAI, July 13 -- India's largest asset manager is coming to market at a discount.

SBI Funds Management oversees nearly Rs.29.5 trillion of assets-about 2.5 times those of its closest listed rival. Yet it is seeking a valuation below some of its smaller peers, reflecting investor concerns that its scale has not translated into superior profitability.

As it launches India's largest initial public offering (IPO) of 2026 so far, the fund house is betting that higher-margin private markets, rather than its core mutual-fund business, will drive its next phase of earnings growth.

The Rs.9,813-crore IPO opens on 14 July and is entirely an offer for sale (OFS), with State Bank of India and Amundi India Holding selling 4.9% and 3.5% stakes, re...