Here's what to expect from SBI Funds Management IPO

SBI Funds Management is set to go public in a close to Rs 11,700 crore IPO and French asset manager Amundi is set for a massive gain as it looks to pare its stake in the issue.

The public issue of India's largest mutual fund manager is an entirely offer for sale, where State Bank of India is set to sell around 6.3% stake (128.3 million shares) in the company. Amundi is offloading around 3.7% (75.3 million shares) in SBI Funds Management.

Important to note here is that neither SBI nor Amundi are exiting the company but only reducing their stake. Post listing SBI will still hold 55.46% and Amundi will have 32.56% stake.

The price band for the issue has been set in the Rs 545-574 a share range. At around Rs 11,693 crore, this will be the largest public issue in the Indian market so far this year. At the top-end of the price band, SBI Funds Management will be valued at Rs 1.17 lakh crore. 

Stock Exchange NSE and Reliance Industries-owned telecom form Jio have also filed papers to go public, and these will be far larger issues when they hit the market later this financial year. 

Windfall gains for promoters 

Amundi had acquired a stake in SBI Funds Management back around 15 years ago for around Rs 174 crore. Based on the valuation of SBI Funds Management, Amundi could be getting over Rs 4,300-4,400 crore from its stake sale. 

The French asset manager had acquired 36.33 per cent stake in SBI Funds Management in June 2011 from Société Generali Asset Management. 

SBI is also set for sizeable gains from the issue with the country's largest lender set to pocket around Rs 7,364 crore from the sale. 

SBI FM IPO

The IPO will open for subscription on July 14 and close on July 16.The anchor book will be open on July 13. It is an entirely offer for sale, with no fresh issue of shares. So, the company as such will not be getting any money, with all the proceeds going to the selling shareholders. 

SBI Funds Management managed the country's largest mutual fund with quarterly average assets under management of Rs 12.50 lakh crore in financial year 2026. Its AUM has seen a 19.9% compounded annual growth between March 2021 to March 2026 and it's market share in FY26 stood at 15.3%.