11 July,2026 06:59 PM IST | Mumbai | mid-day online correspondent
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SBI Funds Management, one of India's largest asset management companies (AMCs), will launch its initial public offering (IPO) on July 14, with an issue size of up to Rs 11,692 crore. The IPO will open for subscription on July 14 and close on July 16, with the price band set at Rs 545-574 per share. Anchor investors (large institutional buyers like mutual funds, banks, pension funds) will be able to place their bids a day earlier, on July 13. Here are the key details about the IPO.
An IPO marks the first time a privately held company is listed on a stock exchange and becomes publicly traded by offering its shares to investors. The SBI Funds Management IPO is entirely an offer-for-sale (OFS), which means the sale proceeds will go to the shareholders selling their stake rather than to the company. Typically, promoters sell their stake through an OFS to meet regulatory shareholding requirements.
"Our company will not receive the offer proceeds, and all proceeds will be received by the promoter selling shareholders after deduction of their respective portions of the offer-related expenses and applicable taxes, to be borne by the promoter selling shareholders," SBI Funds Management said in its Draft Red Herring Prospectus (DRHP).
The DRHP is a preliminary document filed with the market regulator, SEBI, before launching an IPO.
SBI Funds Management is a joint venture owned by State Bank of India (SBI), the country's largest bank, and Amundi India Holding, the Indian subsidiary of French asset management company Amundi.
At the time of filing the DRHP, SBI and Amundi India Holding held 61.76% and 36.26% stakes, respectively. Under the IPO, SBI will offload 12.83 crore shares (around 6.3%), while Amundi India Holding will divest 7.5 crore shares (around 3.7%).
Of the total issue of 20.37 crore equity shares, 35% of the shares have been reserved for retail individual investors. The company has also reserved 6.41% of the issue for eligible SBI shareholders. In addition, 0.01% of the issue has been reserved for eligible SBI Mutual Fund employees and 0.15% for SBI employees.
SBI Funds Management is the investment manager of SBI Mutual Fund, India's largest asset management company by quarterly average assets under management (QAAUM).
For the quarter ended March 31, 2026, its mutual fund QAAUM stood at Rs 12.51 lakh crore, up from Rs 10.73 lakh crore a year earlier.
Including its portfolio management services (PMS), advisory and alternative investment fund (AIF) businesses, the company's total QAAUM stood at Rs 29.46 lakh crore during the same quarter.
According to a CRISIL report, SBI AMC held a 15.3% share of the Indian asset management industry's total QAAUM, which stood at Rs 81.54 lakh crore as of March 31, 2026.
In its DRHP, SBI Funds Management said macroeconomic factors could lead to market volatility, and adverse conditions could prompt investors to shift towards lower-risk investment options.
The company also highlighted risks arising from increasing competition, unit-linked insurance products, rapid technological changes and evolving regulatory requirements.
The book-running lead managers for the IPO are Kotak Mahindra Capital, Axis Capital, BofA Securities India, HSBC Securities and Capital Markets, ICICI Securities, Jefferies India, JM Financial, Motilal Oswal Investment Advisors, and SBI Capital Markets.
