SBI Funds Management IPO: 10% of Shares Reserved for SBI’s 38 Lakh Shareholders

SBI Funds Management’s initial public offering (IPO), valued at up to Rs 11,693 crore, is set to open for public subscription from July 14 to July 16, 2026, with a price band ranging from Rs 545 to Rs 574 per share. This IPO is anticipated to be the largest public issue of 2026 thus far, featuring an offer for sale (OFS) of over 20 crore shares by State Bank of India (SBI) and Amundi India Holding. Notably, 1.3 crore shares worth approximately Rs 750 crore are reserved for eligible SBI shareholders, who will be allowed to bid up to a maximum of Rs 2 lakh. The stock is expected to be allotted on July 17, with the listing anticipated on July 21, 2026.

In terms of distribution, the IPO reserves 35% for retail investors, 5% for small high net-worth individuals (HNIs), 10% for large HNIs, and the remaining 50% for qualified institutional bidders (QIBs). Meanwhile, eligible employees will receive a discount of Rs 54 per share when bidding, while existing SBI shareholders will not benefit from any discount in the shareholder reservation category. The total offer reflects SBI’s strategy to partially monetize its stake in its asset management subsidiary, providing a partial exit for Amundi India Holding as well.

As for the grey market sentiment, the unlisted shares of SBI Funds Management are currently trading at a grey market premium (GMP) of over 13%, valued at Rs 649 per share, which suggests positive investor interest ahead of the IPO. The fact that the offering is entirely an offer for sale means that the proceeds will not be retained by the company but will go directly to the selling shareholders. For Indian investors, this IPO represents a significant opportunity to participate in one of the country’s largest asset management firms, which could benefit from the growing financial market landscape in India.

Source: The Economic Times

(Expert Note: This report was prepared by the Wealthova IPO team.)