MUMBAI: SBI Funds Management Ltd has fixed a price band of Rs545-574 per share for its initial public offering (IPO), which will open for subscription on July 14. Anchor investor bidding will begin on July 13, while the issue will close on July 16.
The basis of allotment is expected to be finalised on July 18. Refunds and credit of allotted shares are scheduled for July 20, with the company's shares slated to list on the stock exchanges on July 21.
At the upper end of the price band, SBI Funds Management is expected to command a post-listing market capitalisation of around Rs1.17 lakh crore. The IPO is a pure offer for sale (OFS) aggregating up to Rs11,102 crore by existing promoters State Bank of India (SBI) and Amundi India Holding.
Under the offer, SBI will offload up to 12.83 crore shares, representing a 6.3 per cent stake, while Amundi India Holding will sell up to 7.56 crore shares, equivalent to a 3.7 per cent stake.
SBI, Amundi own around 98% of SBI Funds Management
Together, SBI and Amundi currently own around 98 per cent of SBI Funds Management.
SBI currently holds 126 crore shares, or a 61.73 per cent stake, acquired at a weighted average price of Rs0.15 per share for about Rs19 crore. At the upper end of the IPO price band, the value of its holding works out to around Rs68,670 crore, representing an appreciation of nearly 3,600 times.
Amundi India Holding owns 74 crore shares, or a 36.26 per cent stake, acquired at a weighted average cost of Rs4.35 per share, with its total investment amounting to Rs322 crore. At the upper end of the price band, the value of its holding rises to around Rs40,330 crore, translating into an appreciation of nearly 125 times.
Lead managers
The book-running lead managers to the issue are 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.
According to the draft red herring prospectus (DRHP), SBI Funds Management is India's largest asset management company by quarterly average assets under management (QAAUM), with QAAUM of Rs12,49,970 crore and a mutual fund market share of 15.4 per cent as of December 31, 2025.
Including its portfolio management services (PMS) and other advisory mandates, the company's total QAAUM stood at Rs29,04,026 crore as of the same date.
SBI Funds Management is also India's oldest asset management company, serving as the investment manager to SBI Mutual Fund, which commenced operations in June 1987 as the first mutual fund established outside the erstwhile Unit Trust of India.
The company is also India's largest passive asset manager, covering exchange-traded funds (ETFs) and index funds, with passive QAAUM of Rs3,99,953 crore and a market share of 29.6 per cent as of December 31, 2025, according to the DRHP.
