SBI Funds Management's ₹11,792.91 crore IPO is set to open for subscription from July 14-16, 2026, with anchor investor bidding on July 13. The IPO has been fixed at a price band of ₹545-574 per share, with each share carrying a face value of ₹1. As per the latest reports, the IPO will be entirely an offer for sale (OFS) of up to 203.71 crore equity shares representing 10.13% of the company's paid-up equity share capital. The fund house announced the price band on July 9, with allotment to investors expected on July 17 and shares to be credited to demat accounts on July 20. Since the issue is fully an offer for sale, SBI Funds Management will not receive any proceeds from the IPO, with all money going to the selling shareholders. The qualified institutional buyers (QIB) portion will close on July 16, a day before the issue closes for other investor categories. The company employees will be given a discount of ₹54 rupees per share during the bidding process. The IPO is expected to target a valuation of up to ₹1.17 lakh crore, positioning it as one of India's largest IPOs this year.
The proposed SBI Funds Management IPO is set to deliver extraordinary returns for its promoter shareholders. India's largest lender State Bank of India (SBI) is set for a return of nearly ₹7,365 crore from its stake sale, while Amundi India Holding stands to book a ₹4,293 crore profit, as the two promoter shareholders prepare to pocket a combined ₹11,658 crore profit through the offering. At the upper end of the price band, SBI's stake, acquired at a weighted average cost of just ₹0.15 per share, will fetch gross proceeds of ₹7,366.4 crore against a cost basis of roughly ₹1.92 crore, translating to a profit of about ₹7,365 crore. Amundi, which paid a weighted average cost of ₹4.35 per share, will generate gross proceeds of ₹4,326.52 crore against a cost basis of ₹322 crore, for a profit of approximately ₹4,293.73 crore. The share sale is divided between the two promoters, with SBI accounting for 12.83 crore shares (~63% of the IPO) and Amundi India Holding offering 7.54 crore shares (~37% of the IPO). SBI will sell up to 6.3% stake or 12.83 crore equity shares, while Amundi India Holding will divest up to 3.7% stake representing 7.54 crore equity shares. Prior to the issue, SBI holds a 61.7% stake in the company, while Amundi India owns 36.3%, taking the promoters' combined holding to 98%. Following the completion of the IPO, SBI's stake in SBI Funds Management is expected to reduce to 88.19% from the current 98.19%, though the country's largest lender will continue to remain the majority shareholder.
The SBI Funds Management IPO will create 13 crorepati employees through its employee stock option plans, showcasing the rewarding impact of ESOPs in the mutual fund industry. The fund house's Deputy Managing Director, Devinder Pal Singh, who is one of its longest-serving employees, owns 21,14,004 shares worth ₹121 crore at the upper band of ₹574 per share. Singh, who joined SBIFM on January 1, 2006, has outstanding ESOPs of 5,19,300 shares worth another ₹30 crore. The fund house's Chief Investment Officer, Srinivasan Rama Iyer (fondly known as Vasan) owns ESOPs of 18,24,728 shares worth ₹105 crore and has outstanding ESOPs of 8,94,800 shares worth ₹51 crore. Similarly, Srinivas Jain, Chief of Strategy, Digital & Technology and Head of Investor Relations, owns ESOPs worth ₹59 crore and has outstanding ESOPs of ₹10 crore. The other crorepati employees include Rajeev Radhakrishnan (Chief Investment Officer - Fixed Income) with ESOPs worth ₹36 crore, Aparna Nirgude (Chief Risk Officer) with ESOPs worth ₹31 crore, and Vinaya Datar (Chief Compliance Officer) with ESOPs worth ₹21 crore. Eyeing over ₹11,600 crore, the promoters of the fund house – SBI and European fund management company Amundi India Holdings – will offload shares to collectively rake in ₹11,692 crore. The government is expected to collect ₹1,400 crore from the selling promoters as long-term capital gains tax.
The grey market premium (GMP) for SBI Funds Management IPO stood at ₹84 as of July 10, indicating a potential listing price of ₹658 per share at a premium of 14.63% over the upper price band. According to InvestorGain, this grey market premium suggests strong investor interest ahead of the July 14 launch. However, GMP does not represent official data and is based on speculation, and investors should consult with financial advisors before making investment decisions. The IPO structure includes significant provisions for existing stakeholders, with 35% of the IPO reserved for retail investors, 5% for Small HNIs, 10% for big HNIs and the remaining 50% for Qualified Institutional Bidders (QIBs). As many as 1.3 crore shares worth nearly ₹750 crore have been reserved for existing SBI shareholders, though there is no discount for existing shareholders for bidding. Shares worth ₹170 crore have been reserved for eligible employees, who will also get a discount of ₹54 per share on the IPO price during the bidding process. July 7 is the last date for SBI shareholders to be eligible for SBI Funds IPO participation.
State Bank of India has completed a strategic pre-IPO transaction, selling a 1.4% stake for approximately ₹1,655 crore through the sale of 2.88 crore shares at ₹574 per share. According to exchange filings, this transaction was executed ahead of the public listing to optimize the IPO structure. Following this pre-IPO deal, SBI will remain the largest shareholder in SBI Funds Management, which it currently owns 126 crore shares representing 61.86% stake, while Amundi India Holding owns 74 crore shares, representing a 36.33% stake. Amundi has confirmed that it will sell up to 3.7% stake representing 75.37 crore equity shares through the IPO, as reported to the Euronext stock exchange. Despite the pre-IPO sale, both shareholders have committed to maintaining long-term control through an Inter-se Agreement under which SBI has committed to maintaining at least a 52% stake in the company on a fully diluted basis, while Amundi has agreed not to reduce its holding below 23%. Additionally, both companies signed a Commercial Agreement on March 19, 2026, under which they will continue working together as preferred partners for investment management and distribution services. SBI Funds Management reported ₹12.51 lakh crore in mutual fund assets and a market share of 15.3% as of March 2026, with total quarterly average assets under management, including portfolio management services and advisory mandates, standing at ₹29.46 lakh crore. SBI Funds Management shares will be listed on both the stock exchanges, BSE and NSE, on July 21.
