SBI Funds Management, India's preeminent mutual fund manager, is set to launch its highly anticipated initial public offering (IPO) next week. The public issue, an entirely offer for sale (OFS), aims to raise approximately ₹11,693 crore, making it the largest public issue in the Indian market so far this year.
Key Details of the Offer
The price band for the SBI Funds Management IPO has been set between ₹545 and ₹574 per share. At the upper end of this band, the company is valued at an impressive ₹1.17 lakh crore. The IPO opens for subscription on July 14 and will close on July 16, with the anchor book opening a day earlier on July 13.
As an OFS, the company itself will not receive any proceeds from the issue. Instead, all funds will go to the selling shareholders, who are paring down their stakes in the asset management firm.
Promoters to Reduce Stakes, Reap Significant Gains
Both State Bank of India (SBI) and French asset manager Amundi are offloading portions of their holdings in SBI Funds Management. SBI, the country's largest lender, is set to sell approximately 6.3% of its stake, totaling around 128.3 million shares. This sale is expected to net SBI around ₹7,364 crore.
Amundi, which acquired its stake in SBI Funds Management about 15 years ago for roughly ₹174 crore, is selling approximately 3.7% (75.3 million shares). This move is projected to result in a substantial gain for Amundi, with estimated proceeds ranging between ₹4,300 crore and ₹4,400 crore.
It is important to note that neither SBI nor Amundi are fully exiting the company. Post-listing, SBI will retain a majority stake of 55.46%, while Amundi will hold 32.56%, indicating their continued commitment to the fund manager.
Strong Financial Performance
SBI Funds Management boasts robust financial performance, managing the country's largest mutual fund with quarterly average assets under management (QAAUM) reaching ₹12.50 lakh crore in the financial year 2026. The company has demonstrated strong growth, with its AUM experiencing a compounded annual growth rate (CAGR) of 19.9% between March 2021 and March 2026. Its market share stood at a significant 15.3% in FY26, solidifying its position as a market leader.