SBI Funds Management reveals price band for ₹11,693cr IPO
What's the story
SBI Funds Management Ltd., a subsidiary of State Bank of India (SBI), has announced a price band of ₹545 to ₹574 per share for its ₹11,693 crore initial public offering (IPO). This will be the biggest public issue of 2026 so far. The anchor book will open on July 13, while the IPO subscription period is from July 14 to July 16.
Offer details
IPO details
The upcoming IPO is a complete Offer For Sale (OFS) of over 20 crore shares, with no fresh equity issue. Hence, SBI Funds Management will not get any money from the offer. Each equity share has a face value of Re 1. One lot will consist of 26 shares and at the upper end of the price band, retail investors bidding for one lot will have to invest at least ₹14,924.
Investor categories
Shareholder and employee reservation
The total issue has been divided into different categories: 35% for retail investors, 5% for small HNIs, 10% for big HNIs, and the remaining 50% for qualified institutional bidders (QIBs). A shareholder reservation is also available in the IPO. Eligible SBI shareholders have been allotted around 1.3 crore shares worth nearly ₹750 crore. Eligible employees have been allotted shares worth ₹170 crore with a discount of ₹54 per share while bidding.
Valuation insights
Major shareholders selling stakes
At the upper end of the price band, SBI Funds Management is valued at nearly ₹1.17 lakh crore in terms of market capitalization. SBI will offload up to 12,83,34,397 shares through this offer, which is 6.3% of SBI Funds Management's paid-up equity share capital. Amundi India Holding will sell up to 7,53,74,842 shares or 3.7% of the company's paid-up equity share capital.
Upcoming steps
SBI Funds Management is India's oldest asset management company
The filing of the draft red herring prospectus by SBI Funds Management has brought the IPO closer to launch. SBI Funds Management is India's oldest asset management company and the investment manager for SBI Mutual Fund. It is also India's largest passive asset manager with a 29.6% market share as of December 31, 2025.