SBI Funds Management secures Rs 2,663 crore from anchor investors; IPO opens Tuesday

New Delhi: SBI Funds Management has raised Rs 2,663 crore from anchor investors with the issue attracting strong participation from global and domestic institutional investors.

The company's Rs 9,795-crore initial public offering (IPO) opens for subscription on Tuesday.

Follow The PSUWatch Channel on WhatsApp

The asset management firm allocated 4,63,93,095 equity shares to 129 funds at Rs 574 per share, the upper end of the price band, according to a stock exchange filing issued late on Monday.

The anchor book saw participation from global investors such as GIC, Abu Dhabi Investment Authority, Capital World Investors, BlackRock, Fidelity Management & Research, Goldman Sachs Asset Management and Norges Bank, alongside leading domestic institutions like Life Insurance Corporation of India (LIC), HDFC Mutual Fund (MF), ICICI Prudential MF, Nippon India MF and HDFC Life Insurance.

Among the largest allocations, HDFC MF and ICICI Prudential MF received shares worth Rs 200 crore each, while Capital World Investors, GIC and LIC were allotted shares worth Rs 180 crore each.

Domestic mutual funds accounted for 37 percent of the anchor book, with 23 mutual funds investing through 70 schemes.

The IPO will open for public subscription on July 14 and close on July 16. The price band has been fixed at Rs 545-574 per equity share, with investors able to bid for a minimum of 26 shares and in multiples thereafter.

The public issue is entirely an offer for sale (OFS) of up to 17.09 crore equity shares by existing shareholders State Bank of India (SBI) and Amundi, aggregating up to Rs 9,795 crore at the upper end of the price band.

SBI will sell a 6.3 percent stake, while Amundi will divest 3.7 percent.

Post listing, SBI's holding will decline to 55.46 percent from 61.76 percent, while Amundi's stake will reduce to 32.56 percent.

The issue size was earlier proposed at Rs 11,693 crore but was subsequently reduced after the company completed a pre-IPO placement of about Rs 1,880 crore.

At the upper end of the price band, SBI Funds Management is valued at around Rs 1.2 lakh crore.

Follow PSU Watch on LinkedIN

Established in 1987, SBI Funds Management is India's largest asset management company by quarterly average assets under management (QAAUM), with Rs 12.51 lakh crore in mutual fund QAAUM and a 15.3 percent market share as of March 31, 2026.

Including portfolio management services and alternative investment mandates, the company managed total QAAUM of Rs 29.46 lakh crore at the end of FY26.

(PSU Watch is India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy. 👉 Click to join our channel now: PSUWatch WhatsApp Channel. Prefer LinkedIn? Follow PSU Watch on LinkedIN. Click to stay connected on Twitter here and stay updated)