SBI Funds Management Sets ₹545-₹574 IPO Price Band, Eyes ₹1.17 Trillion Valuation

SBI Funds Management has fixed the price band for its initial public offering (IPO) at ₹545 to ₹574 per share, valuing India's largest asset manager at as much as ₹1.17 trillion. According to an exchange filing by the State Bank of India (SBI), the three-day public issue will open for subscription on July 14 and close on July 16, while the shares are scheduled to list on Indian stock exchanges on July 21.

Invest in Indian Markets and Unlock Future Potential With 5paisa!

Open Account Now

Offer for Sale by Existing Shareholders

The IPO is entirely an offer for sale (OFS), meaning SBI Funds Management will not issue fresh shares or receive any proceeds from the offering. SBI will sell up to 128.3 million shares, while Amundi India Holding will offload up to 75.4 million shares. Together, the two shareholders are divesting around 10% of the company's paid-up equity capital.

Employees participating in the issue will receive a discount of ₹54 per share. The company has also scheduled the anchor investor allocation for July 13, ahead of the public subscription.

Strong Investor Interest Ahead of Listing

As per reports, the IPO has attracted interest from several global institutional investors, including sovereign wealth funds such as the Abu Dhabi Investment Authority and GIC. The issue, expected to raise about $1.22 billion, is likely to rank among the largest public offerings in India this year.

The SBI Funds Management share price will be discovered through the IPO process within the announced price band. Market participants will closely track the SBI Funds Management share price during the subscription period and after its expected debut on July 21.

The offering comes at a time when global markets are navigating heightened geopolitical uncertainty. Rising crude price following renewed tensions in the Middle East has added volatility to financial markets, although India's primary market pipeline has remained active.

Largest Asset Manager by Assets Under Management

According to the company's draft prospectus, SBI Funds Management managed assets worth ₹12.5 trillion as of March 31, making it the country's largest asset management company by assets under management. The company operates as a joint venture between SBI and Europe's largest asset manager, Amundi.

At the upper end of the price band, the proposed valuation of ₹1.17 trillion, or about $12.24 billion, places the company alongside India's leading listed asset managers. Based on prevailing market valuations, HDFC Asset Management Company has a market capitalisation of about $12.5 billion, while ICICI Prudential Asset Management Company is valued at around $17.2 billion, according to Reuters.

The IPO is also expected to mark the beginning of a busy phase for India's primary market in the second half of the year, with several large public issues, including those from Reliance Jio and the National Stock Exchange of India, anticipated in the coming months. Investors will also watch how the SBI Funds Management share price performs after listing, as it could set the tone for other marquee offerings lined up this year.