The much-awaited initial public offering (IPO) of SBI Funds Management opened for public subscription on Tuesday, giving investors an opportunity to own a stake in India’s largest asset management company. The issue will remain open until July 16, with the stock expected to debut on the exchanges on July 21.
The ₹9,812.9-crore IPO is entirely an Offer for Sale (OFS), meaning no fresh shares are being issued and the company will not receive any proceeds from the issue. Instead, existing shareholders—State Bank of India and its joint venture partner Amundi India Holding—are selling part of their holdings.
The company has fixed the price band at ₹545-574 per share, while investors can bid in lots of 26 shares. At the upper end of the price band, a retail investor will need to invest at least ₹14,924 for one lot.
Ahead of the public issue, SBI Funds Management raised ₹2,663 crore from anchor investors. The anchor book attracted several marquee global names, including sovereign wealth funds from Singapore, Abu Dhabi and Norway, as well as BlackRock, reflecting strong institutional confidence in the asset manager.
Brokerages have largely recommended subscribing to the IPO, citing SBI Funds’ dominant market position, strong profitability, extensive distribution network and consistent growth in assets under management. Many analysts believe the valuation is reasonable compared with listed peers and see the company as a long-term play on India’s expanding mutual fund industry.
The IPO has also generated healthy interest in the grey market, indicating expectations of a positive listing. Existing SBI shareholders enjoy an added advantage, as they can apply under both the retail category and the shareholder reservation portion, improving their chances of receiving an allotment.
As India’s mutual fund industry continues to benefit from rising retail participation and record SIP inflows, the listing of SBI Funds Management is being viewed as one of the biggest capital market events of the year. Market participants will now closely watch subscription levels over the next three days to gauge investor appetite for the landmark offering.
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