SBI Funds Management IPO: 10 key things to know about Rs 11,693 crore public issue

SBI Funds Management's (SBI Mutual Fund) initial public offering worth up to Rs 11,693 crore is all set to open for public bidding next week. India’s largest lender State Bank of India (SBI) is set to offload some of its stake in what is India’s biggest public issue of 2026 so far. Here are 10 key things interested investors should know.

SBI Funds Management IPO will remain open for public bidding between July 14 (Tuesday) and July 16 (Thursday), with the anchor book opening on July 13 (Monday). The allotments are scheduled to be finalised by July 17, and the shares are likely to debut on stock exchanges BSE and NSE by July 21.

SBI Funds Management IPO will entirely comprise an offer for sale of more than 20 crore shares by State Bank of India and Amundi India Holding. SBI will sell up to 12.83 crore shares through the offer, representing 6.3% of SBI Funds Management’s paid-up equity share capital. Amundi India Holding will sell up to 7.54 crore shares, representing 3.7% of the company’s paid-up equity share capital.

SBI Funds Management has fixed a price band of Rs 545-574 per share for its initial public offering. At the top of the price band, SBI Funds Management is valued at nearly Rs 1.17 lakh crore in terms of market capitalisation.

The company has reserved up to 1.3 crore shares valued at nearly Rs 750 crore for allocation to eligible shareholders of State Bank of India. The maximum bid amount under the SBI shareholder reservation portion stands at Rs 2 lakh. Notably, there is no discount for existing SBI shareholders under the shareholder reservation category. Meanwhile, shares worth Rs 170 crore have also been reserved for eligible employees, who will receive a discount of Rs 54 per share when bidding. Of the total issue, 35% has been reserved for retail investors, 5% for small HNIs, 10% for big HNIs and the remaining 50% for qualified institutional bidders (QIBs).

Ahead of listing, the unlisted shares of SBI Funds Management IPO are trading with a grey market premium (GMP) of more than 13% at Rs 649 apiece, over the IPO price of Rs 574 apiece, according to data in sites tracking grey market trends. It is important to note that the grey market is an unofficial market, and the actual listing numbers may differ significantly.

SBI Funds Management’s IPO entirely comprises an offer for sale, which means that none of the issue proceeds will go to the company as they will be received by the selling shareholders.

SBI Funds Management is the investment manager of SBI Mutual Fund, one of India’s largest asset management businesses. The company is India's largest asset management company by mutual fund quarterly average assets under management, holding a 15.3% market share as of March 31, 2026.

SBI Funds Management’s mutual fund QAAUM (quarterly average assets under management) has grown at a CAGR of 16.97% between March 31, 2024 and March 31, 2026, according to the company's Red Herring Prospectus, citing a CRISIL report. The company's total mutual fund QAAUM stood at Rs 12,509.98 billion as of March 31, 2026, up from Rs 10,729.49 billion a year earlier, while its total QAAUM, including its portfolio management services, advisory and alternative investment fund businesses, stood at Rs 29,461.05 billion. The company also holds the lowest operating expense ratio among the top 10 AMCs in India, with operating expenses at 0.08% of QAAUM for fiscal 2026 against a range of 0.10% to 0.25% for the rest of the top 10, the RHP states.

Adverse capital market conditions, any revenue and profit reduction, regulatory framework changes, redemption volatility, possible higher discontinuance rates among first-time and low-ticket investors, competition from other asset management companies, operation risks and several others were listed as the key risks in the RHP of SBI Funds Management IPO.

Kotak Mahindra Capital, 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 were listed as the book running lead managers of the SBI Funds Management IPO. KFin Technologies will be the registrar to the offer.
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