The IPO got bids for 8,50,65,136 shares against 12,45,63,536 shares on offer, according to NSE data.
In an IPO, the NII category includes investors applying for shares worth more than ₹2 lakh. This segment is commonly referred to as the HNI category and is divided into two parts — small HNI (sHNI) and big HNI (bHNI).
The sHNI segment, for applications between ₹2 lakh and ₹10 lakh, was subscribed 1.36 times, while the bHNI segment, for applications above ₹10 lakh, was subscribed 1.25 times.
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The subscription data showed the overall issue receiving bids for 1.3 times the shares on offer so far, while the NII/HNI category crossed full subscription.
The company has reduced the size of the IPO from the originally planned ₹11,693 crore after raising nearly ₹1,655 crore through a pre-IPO placement with 30 investors.
The IPO is a pure Offer for Sale (OFS) by State Bank of India (SBI) and Amundi India Holding, meaning SBI Funds Management will not receive any proceeds from the issue.
Issue Details
The IPO has been priced in the range of ₹545-574 per share, with a face value of ₹1 each. Investors can apply for a minimum of 26 shares, requiring an investment of ₹14,924 at the upper end of the price band.
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Ahead of the issue opening, the stock was commanding a grey market premium (GMP) of around ₹99 per share, according to market participants, implying a potential listing premium of about 17.25% over the upper end of the price band.
Pre-IPO Placement
Before launching the IPO, SBI Funds Management raised approximately ₹1,655 crore through a pre-IPO placement at ₹574 per share, the upper end of the IPO price band. As part of the transaction, SBI sold 2.88 crore shares, representing 1.42% of SBI Funds Management’s pre-IPO equity capital.
Among the investors, PI Opportunities Fund-II and investor Akash Bhanshali each invested around ₹200 crore, while 3P India Equity Fund I invested nearly ₹150 crore. Other participants included Malabar India Fund, Tata AIG General Insurance, Go Digit General Insurance, Anand Rathi Global Finance, Clarus Capital I, Carnelian Bharat Amritkaal Fund, Bennett Coleman & Co. Ltd., and several institutional and family office investors.
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Since the issue remains a pure OFS, the proceeds from the pre-IPO placement and the IPO will go entirely to the selling shareholders rather than the company. The participation of marquee investors at the upper end of the price band is seen as a positive signal for demand and valuation.
About the company
SBI Funds Management is India’s largest mutual fund house, managing ₹12.5 lakh crore in mutual fund assets with a 15.3% market share. The company is a joint venture between State Bank of India and Amundi, Europe’s largest asset manager.
For FY26, the company reported total income of ₹4,976 crore, up 17% year-on-year, while net profit increased 21% to ₹3,067 crore. Its return on net worth stood at 43.02%.
The listing will mark the third IPO by an SBI Group company, following the successful public offerings of SBI Life Insurance and SBI Cards & Payment Services.