SBI Funds Management IPO 2026: Size cut to ₹9,812.9 crore

What changed ahead of the IPO

SBI Funds Management (SBIFM), India’s largest asset management company, has reduced the size of its initial public offering after completing a pre-IPO stake sale to marquee investors. SBIFM is promoted by State Bank of India (SBI) and Amundi India Holding. The IPO remains an offer-for-sale (OFS) with no fresh issue component, meaning the company will not receive any proceeds from the public issue.

The public issue is scheduled to open on July 14, 2026 and close on July 16, 2026. The anchor book is slated to open on July 13. Basis of allotment is expected to be finalised on July 17, and listing is tentatively scheduled on BSE and NSE on July 21.

Pre-IPO placement: stake sold to 30 investors

A day after filing the Red Herring Prospectus (RHP) with the Registrar of Companies, SEBI, and the stock exchanges, SBI and Amundi entered into share purchase agreements on July 9. Under these agreements, SBI agreed to sell 2.88 crore shares for ₹1,655 crore and Amundi agreed to sell 39.19 lakh shares for ₹225 crore.

The transfer of a total of 3.27 crore shares representing a 1.6 percent stake was completed on July 10 by the promoter-selling shareholders. The sale was executed at ₹574 per share, which is the upper end of the IPO price band.

Several reports also describe the SBI leg of the pre-IPO placement as a 1.42 percent stake sale by SBI alone, involving 2,88,32,748 shares (face value ₹1) at ₹574 per share for an aggregate consideration of ₹1,654.99 crore, sold to 30 investors.

Who bought shares in the pre-IPO round

The pre-IPO placement included institutional investors and individuals. Among the largest investors cited were PI Opportunities Fund-II and Akash Manek Bhanshali, with each purchasing 34,84,320 equity shares for a consideration of nearly ₹200 crore.

3P India Equity Fund 1 acquired 26,13,240 shares for about ₹150 crore. Other participants mentioned include Tata AIG General Insurance Company, Hara Global Capital Master Fund I Ltd, Clarus Capital I, Pulkit Benefit Trust, Malabar India Fund, Go Digit General Insurance, and 360 ONE funds.

IPO size reduced after the pre-IPO sale

Following the pre-IPO placement, the IPO size was cut. As per the updated details, the IPO was reduced from 20.37 crore equity shares worth ₹11,692.9 crore to 17.09 crore equity shares amounting to ₹9,812.9 crore.

Some market trackers have also stated that SBIFM raised ₹1,880 crore through the pre-IPO placement and that the IPO size reduced from ₹11,692.91 crore to around ₹9,795.31 crore. The core change remains that a portion of the OFS moved from the public issue to the pre-IPO round.

Key dates, price band, and minimum lot

The IPO is a book-built issue. The price band is ₹545 to ₹574 per share. The minimum application size for retail investors is 26 shares, requiring ₹14,924 at the upper end of the price band.

For small non-institutional investors (sNII), the minimum application size is 14 lots (364 shares), amounting to ₹2,08,936. For big non-institutional investors (bNII), the minimum application size is 68 lots (1,768 shares), requiring ₹10,14,832. Another stated retail detail is that retail investors can apply up to 13 lots (338 shares) for ₹1,94,012.

Offer structure and category allocation

The issue is entirely an OFS by the promoters, including SBI and Amundi India Holding. With no fresh issue, proceeds go to selling shareholders rather than SBIFM.

Allocation splits cited include 50.0 percent for qualified institutional buyers (QIBs), 15.0 percent for non-institutional investors (NIIs/HNIs), and 35.0 percent for retail investors. A shareholder quota of 6.4 percent (₹749.39 crore) has also been mentioned.

Lead manager and registrar

Kotak Mahindra Capital Company is the book-running lead manager for the issue. KFin Technologies Ltd has been appointed as the registrar to the IPO.

Why this matters for investors

The pre-IPO sale at the upper end of the price band (₹574) sets a visible reference point for demand from a set of institutional and marquee investors. It also reduces the number of shares available in the public issue because those shares have already been placed ahead of the IPO.

Because the IPO is an OFS, investors evaluating the offer typically focus on offer pricing, secondary market appetite, and the selling shareholder intentions, rather than expecting immediate balance sheet inflows for the company from the issue proceeds.

Key facts at a glance

Timeline of the pre-IPO placement and issue process

Conclusion

SBI Funds Management’s IPO has been resized after promoters placed a portion of shares with 30 investors in a pre-IPO transaction priced at ₹574 per share. The public issue, now smaller and still fully an OFS, opens July 14 and closes July 16, with allotment expected on July 17 and listing tentatively set for July 21.