The initial public offering (IPO) of State Bank of India’s (SBI) subsidiary, SBI Funds Management Ltd, opened for public subscription on Tuesday, aiming to raise nearly ₹10,000 crore from the primary market.

SBI Funds Management IPO price band is set at ₹545 – ₹574 per share, and the IPO lot size is 26 shares. The mainboard issue will remain open for subscription until July 16.

The IPO is entirely an Offer for Sale (OFS) of over 20.37 crore equity shares by the company’s promoters — State Bank of India (SBI) and Amundi India Holding.

Under the OFS, SBI is selling up to 12.83 crore equity shares, representing a 6.3% stake in SBI Funds Management, while Amundi India Holding is offloading up to 7.54 crore shares, equivalent to a 3.7% stake.

As per the allocation structure, up to 50% of the issue is reserved for Qualified Institutional Buyers (QIBs), 35% for Retail Individual Investors (RIIs), and 15% for Non-Institutional Investors (NIIs).

SBI shareholder reservation

SBI Funds Management IPO includes a dedicated reservation for eligible State Bank of India (SBI) shareholders. The company has earmarked up to 1.3 crore equity shares, valued at nearly ₹750 crore at the upper end of the price band, for this category.

This provides eligible SBI shareholders with an additional opportunity to secure an allotment over and above the regular retail quota.

Who is eligible to apply under the SBI shareholder category?

Investors who held SBI shares as of July 7, 2026, the date of filing the Red Herring Prospectus (RHP), are eligible to apply under the reserved shareholder category.

According to the SBI Funds Management IPO RHP filed with SEBI, eligible applicants must have a valid Permanent Account Number (PAN) updated in SBI’s shareholder records and hold a valid demat account.

Can SBI shareholders submit two applications?

Yes. Eligible SBI shareholders can submit two separate applications — one under the retail category and another under the shareholder reservation category.

Since these are independent categories with separate allocation pools, investors effectively get two separate chances of receiving an allotment, provided both applications comply with IPO rules.

How does IPO allotment work?

The retail and shareholder categories are treated independently during the allotment process.

In the retail category, investors can apply for a minimum of one lot (26 shares). If SBI Funds Management IPO gets oversubscribed, allotment is typically determined through a computerised lottery.

In the shareholder category, allotment is conducted separately from the retail portion and is made on a proportionate basis, subject to the level of subscription within the reserved quota.

SBI Funds Management IPO Anchor Book

Ahead of the SBI Funds Management IPO opening, the company had already raised ₹2,663 crore from anchor investors on Monday, attracting strong participation from global and domestic institutional investors.

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

SBI Funds Management IPO GMP Today

SBI Funds Management shares are commanding a strong grey market premium (IPO) as the issue went live for subscription. According to the websites tracking the grey market, SBI Funds Management IPO GMP today is ₹93 per share.

SBI Funds Management IPO GMP today indicates that in the grey market, SBI Funds Management shares are trading at ₹667 apiece, which is at a premium of 16.20% to the issue price of ₹574 per share.

Should you apply to SBI Funds Management IPO?

SBI Funds Management Ltd is India’s largest asset management company by mutual fund Quarterly Average Assets Under Management (QAAUM), with a 15.3% market share as of March 31, 2026.

“At the upper price band, the company is valuing at P/E at 38.1x and EV/EBITDA of 33.6x with its FY26 earnings and market cap of ₹11,69,139 million post issue of equity shares. We believe that the IPO is fully priced and recommend a ‘Subscribe’ rating to the IPO,” said brokerage firm Anand Rathi.

Nirmal Bang Securities noted SBI Mutual Fund is attractively valued relative to listed peers. At 33.6x EV/EBITDA and 38.1x P/E, the issue is available at a discount to ICICI Prudential AMC and HDFC AMC.

“Given its market leadership, strong distribution network, healthy profitability and favorable industry outlook, we assign a ‘Subscribe’ rating to the issue from a medium-to-long-term perspective,” said the brokerage firm.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.