SBI shares gain 1% as SBI Funds Management announces IPO dates, price band; what shareholders should know

Shares of State Bank of India (SBI) gained as much as 0.8% to ₹1,025 apiece on the NSE in the opening deals after India's largest fund house, SBI Funds Management, announced the price band and opening dates for its much-awaited initial public offering (IPO).

The company has fixed a price band of ₹545 to ₹574 per share for the issue. The IPO will open for subscription on July 14 and close on July 16, while the anchor investor bidding is scheduled for July 13.

Details from RHP

According to the Red Herring Prospectus (RHP), SBI will offload up to 128,334,397 equity shares in the IPO through an offer for sale (OFS). The company's pre-offer paid-up equity share capital stands at 2,036,827,612 shares.

Based on these numbers, SBI is selling approximately 6.30% of SBI Funds Management's pre-issue equity capital. The calculation is as follows:

Since the IPO is entirely an OFS, the proceeds from the sale will accrue to the selling shareholder, SBI, and not to SBI Funds Management. SBI will continue to remain the majority shareholder in the asset management company after the completion of the IPO.

The IPO will see existing promoters SBI and Amundi India Holding offloading part of their holdings. According to the RHP, SBI will sell up to 128.33 million equity shares, while Amundi India Holding will divest up to 75.39 million shares.

At the upper end of the price band of ₹574 per share, the IPO is valued at ₹11,692.91 crore, making it one of the largest public issues in India's asset management industry.

What investors need to know

Upon listing, SBI Funds Management Ltd (SBIFML) will join other listed asset management companies, such as ICICI Prudential AMC, HDFC AMC, UTI AMC, Aditya Birla Sun Life AMC, Shriram AMC, and Nippon Life India Asset Management.

SBI Funds Management Ltd is a joint venture between SBI and Paris-based Amundi, holding 61.98% and 36.40% stakes, respectively.

The company is the country's largest asset management firm, with a quarterly average assets under management (QAAUM) of nearly ₹12.5 lakh crore as of December 2025.

SBI Mutual Fund, sponsored by SBI and established in 1987, was the first non-UTI mutual fund in India.

A consortium of merchant bankers has been appointed to manage the issue, including Kotak Mahindra Capital, Axis Capital, BofA Securities India, HSBC Securities and Capital Markets (India), ICICI Securities, Jefferies India, JM Financial, Motilal Oswal Investment Advisors, and SBI Capital Markets.