State Bank of India (SBI) is set to sell a 1.42% stake in its asset management subsidiary, SBI Funds Management, through a pre-IPO placement, raising ₹1,655 crore ahead of the company's initial public offering (IPO). The development was first reported by the Business Standard.
The pre-IPO placement is expected to provide an early indication of institutional demand for the IPO, which is scheduled to open for subscription on July 14, 2026.
SBI will sell 2.88 crore shares, representing a 1.42% stake in SBI Funds Management, to 30 institutional investors.
The shares will be offered at ₹574 per share, the upper end of the IPO price band. According to Business Standard, the transaction is expected to raise ₹1,655 crore for SBI.
The pre-IPO placement will include participation from several institutional investors, including:
Tata AIG General Insurance
Go Digit General Insurance
360 ONE funds
Bennett Coleman
Several alternative investment funds (AIFs)
Family offices
The participation of these investors is expected to provide an early benchmark for institutional interest ahead of the public issue.
SBI Funds Management's ₹11,700 crore IPO is scheduled to open for subscription on July 14, 2026, with the issue remaining open for three days.
The company has fixed the price band at ₹545 to ₹574 per share, valuing the asset management company at up to ₹1.17 lakh crore.
The shares are expected to be listed on the stock exchanges on July 21, 2026.
Investors interested in applying for IPOs can open a demat account to participate in public issues and hold allotted shares electronically.
The upcoming IPO will be entirely an Offer for Sale (OFS), meaning SBI Funds Management will not issue any fresh shares and will not receive any proceeds from the public issue.
Under the offer:
State Bank of India will sell up to 12.83 crore shares.
Amundi India Holding will divest up to 7.54 crore shares.
Together, the two shareholders will offload around 10% of SBI Funds Management's paid-up equity share capital through the IPO.
SBI Funds Management is India's largest asset management company and operates as a joint venture between State Bank of India and Amundi, Europe's largest asset manager.
The upcoming IPO is expected to be one of the largest public offerings in India's asset management industry and is likely to attract significant attention from institutional and retail investors.
SBI's proposed pre-IPO placement of a 1.42% stake in SBI Funds Management is expected to raise ₹1,655 crore while offering an early indication of institutional demand ahead of the IPO. The public issue is scheduled to open on July 14, 2026, with the IPO comprising entirely an Offer for Sale by SBI and Amundi India Holding.
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Published on: Jul 10, 2026, 12:50 PM IST
Rakesh Deshmukh
Rakesh Deshmukh is a financial content specialist with around 3 years of experience writing impactful content across equities, mutual funds, IPOs, and personal finance. At Angel One, he decodes real-time market trends and breaking news, helping investors and traders stay updated. He also helps investors make informed decisions by simplifying market fundamentals and technical analysis. He holds a bachelor’s degree in commerce.
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