SBI Funds Management Sets Price Band for Major IPO in 2026

SBI Funds Management Ltd. has announced the price band for its upcoming IPO, which is set to be the largest public offering of 2026. The IPO, valued at Rs 11,693 crore, will range from Rs 545 to Rs 574 per share and is entirely an Offer for Sale. The offering will open for anchor investors on July 13 and for public subscription from July 14 to July 16. With various allocations for retail and institutional investors, the IPO aims to partially monetize SBI's investment in its asset management subsidiary. Key details include minimum investment requirements and shareholder reservations, making this a significant event in the financial market.

By Narendra Chaudhary Jul 10, 2026, 14:51 IST

SBI Funds Management IPO Announcement

SBI Funds Management Ltd., the asset management division of the State Bank of India (SBI), has revealed the price range for its highly anticipated initial public offering (IPO), marking it as the largest public offering of 2026 thus far. The IPO, valued at Rs 11,693 crore, will be priced between Rs 545 and Rs 574 per equity share. This public offering is entirely an Offer for Sale (OFS), meaning the company will not receive any funds from the IPO; instead, existing shareholders, including SBI and Amundi India Holding, will reduce their stakes through this offering.

The IPO process will commence with the anchor investor segment opening on July 13, followed by public subscription from July 14 to July 16. The allotment basis is anticipated to be finalized on July 17, with refunds and the release of blocked funds for unsuccessful applicants scheduled for July 20. Shares allocated to successful investors will be credited to their demat accounts on the same day, and the company is expected to debut on the stock market on July 21, pending the completion of the listing process.

Investment Details

Each equity share has a face value of Re 1, and investors must apply in lots of 26 shares. For those applying at the upper price of Rs 574 per share, the minimum investment for a retail investor for one lot amounts to Rs 14,924. Applications for more than one lot can be made in multiples of 26 shares. Since the IPO is solely an Offer for Sale, SBI Funds Management will not gain any new capital from this issue.

The company has allocated different portions of the IPO for various investor categories: 35% for retail investors, 5% for small high-net-worth individuals (HNIs), and 10% for large HNIs, with the remaining 50% reserved for qualified institutional buyers (QIBs). Additionally, existing SBI shareholders can apply under a dedicated shareholder reservation category, with around 1.3 crore shares valued at nearly Rs 750 crore set aside for them.

Moreover, shares worth Rs 170 crore have been designated for eligible employees, who will benefit from a Rs 54 per share discount when applying. However, no price concession has been provided for SBI shareholders applying under the reserved category.

Valuation and Stake Sale Insights

At the upper price band of Rs 574 per share, SBI Funds Management is projected to achieve a market valuation of around Rs 1.17 lakh crore. As part of the Offer for Sale, SBI will divest up to 12,83,34,397 equity shares, which accounts for 6.3% of the company's paid-up equity share capital. Meanwhile, Amundi India Holding plans to offload up to 7,53,74,842 shares, representing 3.7% of the paid-up equity capital.

Earlier in March, SBI had informed stock exchanges that SBI Funds Management had submitted its draft red herring prospectus (DRHP), paving the way for the public offering after obtaining the necessary approvals. SBI Funds Management acts as the investment manager for SBI Mutual Fund, one of the largest asset management firms in India. Through this IPO, SBI aims to partially monetize its investment in the subsidiary, while Amundi India Holding will also achieve a partial exit from its stake.