SBI Funds Management Sets ₹545-574 IPO Price Band; Issue Opens July 14

SBI Funds Management has fixed a price band of ₹545-574 per share for its ₹11,692.91-crore initial public offering (IPO), which will open for subscription on July 14 and close on July 16. Anchor investor bidding will begin on July 13, while the company's shares are scheduled to list on the stock exchanges on July 21.

The IPO is entirely an offer for sale (OFS), with no fresh issue of shares. Existing promoters State Bank of India (SBI) and Amundi India Holding will together offload up to 20.39 crore shares. SBI will sell up to 12.83 crore shares, equivalent to a 6.3% stake, while Amundi India Holding will divest up to 7.56 crore shares, representing a 3.7% stake. The two promoters currently own around 98% of the company.

At the upper end of the price band, SBI Funds Management is expected to command a post-listing market capitalisation of around ₹1.17 lakh crore.

Massive Value Creation For Promoters

SBI currently owns 126 crore shares, or a 61.73% stake, acquired at a weighted average price of ₹0.15 per share for about ₹19 crore. At the upper end of the IPO price band, the value of its holding stands at around ₹68,670 crore, representing an increase of nearly 3,600 times.

Amundi India Holding owns 74 crore shares, or a 36.26% stake, acquired at a weighted average cost of ₹4.35 per share, with its investment valued at ₹322 crore. At the upper end of the price band, the value of its holding rises to around ₹40,330 crore, about 125 times its acquisition cost.

Retail Quota, Lot Size And Employee Discount

The minimum application size is one lot comprising 26 shares. At the upper price band of ₹574, retail investors will need to invest at least ₹14,924 for one lot, with bids thereafter accepted in multiples of 26 shares.

The IPO allocation has been divided with 50% reserved for qualified institutional buyers (QIBs), 35% for retail investors, 10% for non-institutional investors (big HNIs) and 5% for small HNIs.

Existing SBI shareholders will have a separate shareholder reservation, with 1.3 crore shares worth nearly ₹750 crore earmarked for them. Eligible employees have been allocated shares worth around ₹170 crore and will receive a discount of ₹54 per share on the IPO price. There is no discount for SBI shareholders.

The basis of allotment is expected to be finalised on July 18, while refunds and credit of shares are scheduled for July 20.

India's Largest Asset Manager

According to the draft red herring prospectus, SBI Funds Management is India's largest asset management company by quarterly average assets under management (QAAUM), with QAAUM of ₹12,49,970 crore and a mutual fund market share of 15.4% as of December 31, 2025.

Including portfolio management services and other advisory mandates, the company's total QAAUM stood at ₹29,04,026 crore.

SBI Funds Management is also India's oldest asset management company, serving as the investment manager to SBI Mutual Fund, which began operations in June 1987 as the first mutual fund established outside the Unit Trust of India. It is also India's largest passive asset manager, with passive QAAUM of ₹3,99,953 crore and a market share of 29.6%, according to the draft papers.

Kotak Mahindra Capital Company, Axis Capital, BofA Securities India, HSBC Securities and Capital Markets (India), ICICI Securities, Jefferies India, JM Financial, Motilal Oswal Investment Advisors and SBI Capital Markets are the book-running lead managers to the issue.