SBI Funds Management Ltd. has set the price band for its Rs 11,692.91 crore initial public offering at Rs 545 to Rs 574 per share, paving the way for what will be the biggest IPO of 2026 so far.
The asset manager, a subsidiary of State Bank of India, will open its public issue for subscription on July 14. At the upper end of the price band, the company will command a market capitalisation of nearly Rs 1.17 lakh crore.
How Much Do Retail Investors Need?
The IPO lot size has been fixed at 26 shares. At the upper end of the price band, a retail investor will need at least Rs 14,924 to apply for one lot. Applications can then be made in multiples of 26 shares.
The issue is entirely an offer for sale of more than 20 crore shares, with no fresh issue component. This means SBI Funds Management will not receive any proceeds from the IPO.
Of the total offer, 35% has been reserved for retail investors, while 5% and 10% have been allocated to small and large high-net-worth individuals, respectively. The remaining 50% is reserved for qualified institutional buyers.
What Do SBI Shareholders Get?
Existing SBI shareholders will have a separate quota in the IPO. Around 1.3 crore shares worth nearly Rs 750 crore have been reserved for them.
However, there is no price discount for SBI shareholders.
Eligible employees will have shares worth Rs 170 crore reserved for them and will receive a discount of Rs 54 per share during the bidding process.
Following the IPO, SBI's holding in the asset manager is expected to decline from 98.19% to 88.19%.
When Will The IPO Open?
The anchor book will open on July 13, followed by the public subscription window from July 14 to July 16.
The basis of allotment is expected to be finalised on July 17. Refunds and the unblocking of funds for unsuccessful applicants are scheduled for July 20, when shares are also expected to be credited to successful bidders' demat accounts.
With a nearly Rs 11,693-crore issue size and a potential valuation of Rs 1.17 lakh crore, SBI Funds Management's listing is set to be one of the biggest primary market events of the year.
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