SBI Funds Management, India's oldest and largest asset manager, has set a price band of Rs 545-574 per share for its highly anticipated initial public offering (IPO), which will open for public subscription on July 14. The anchor investor portion will open on July 13, while the issue closes on July 16.
Key Highlights
- SBI Funds Management sets IPO price band at Rs 545-574 per share, opening for subscription July 14.
- The issue aims to raise Rs 11,693 crore entirely via OFS, valuing the company at Rs 1.17 lakh crore.
The asset management arm of SBI Mutual Fund aims to raise around Rs 11,693 crore at the upper end of the price band. The issue is entirely an offer for sale (OFS) by existing shareholders -State Bank of India (SBI) and Amundi India Holding. The company's market valuation is pegged at approximately Rs 1.17 lakh crore.
The allotment of shares is expected to be finalised on July 18, with SBI Funds Management shares scheduled to debut on the stock exchanges on July 21. This listing will make SBI Funds Management the third listed subsidiary of SBI, following SBI Life Insurance and SBI Cards & Payment Services.
Regulatory Journey and Ownership Structure
The company received regulatory clearance from SEBI last month, having filed its draft red herring prospectus (DRHP) on March 19, 2026. SBI Funds Management is a joint venture between SBI (63%) and Europe's Amundi (37%).
As part of the OFS, State Bank of India will divest up to 12.83 crore equity shares, representing a 6.3% stake, while Amundi India Holding will sell up to 7.56 crore shares, equivalent to a 3.7% stake. Together, the two promoters currently hold nearly 98% of the company. SBI and Amundi had first announced plans to list the asset manager in November last year, citing the goal of broadening shareholder participation, deepening investor engagement, and strengthening awareness of the company's investment offerings.
A Market Leader Since 1992
Founded in 1992, SBI Funds Management has grown into one of India's largest asset management companies, commanding a market share of more than 15%. It manages assets worth over Rs 28 lakh crore, placing it among the world's largest asset managers by AUM.
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Fee-Based Model With Strong Operating Leverage
The company's revenue model is predominantly fee-based, with management fees tied to AUM growth, allowing earnings to scale as assets increase - providing strong operating leverage and supporting profitability. In recent years, SBI Funds Management has also stepped up investment in technology and artificial intelligence to enhance customer engagement, improve operational efficiency, and lower client acquisition costs, further strengthening its position in India's rapidly expanding mutual fund industry.
