SBI Funds draws sovereign wealth funds to IPO

SBI Funds Management raised ₹26.63 billion from anchor investors, including major sovereign wealth funds, before opening one of the country’s largest public offerings of 2026 to wider subscription on Tuesday.
The asset manager allocated 46.4 million shares to 129 anchor investors at ₹574 each, the upper end of its ₹545-₹574 price band. Strong institutional demand helped the anchor book attract prominent global investors from Singapore, Abu Dhabi, Norway, Canada and the United States.

The Government of Singapore received 2.7 million shares, representing 5.72% of the anchor allocation. The Monetary Authority of Singapore secured about 1.04% of the book. Abu Dhabi Investment Authority, Norway’s Government Pension Fund Global and investment vehicles managed by BlackRock were each allotted roughly 1.6 million shares.

Life Insurance Corporation of India and Capital Group Global Equity Fund were among the biggest individual participants. Each received about 3.1 million shares, equivalent to 6.76% of the anchor book. Goldman Sachs funds and several other international institutions also participated.

Domestic mutual funds accounted for 37.2% of the anchor allocation, investing approximately ₹9.91 billion. Funds operated by HDFC Asset Management, ICICI Prudential Asset Management, Axis Asset Management and other prominent institutions received shares across multiple schemes.

The breadth of the anchor book indicates strong institutional interest in the country’s expanding asset-management industry. Mutual funds have benefited from rising household participation in financial markets, growing systematic investment plan contributions and a gradual shift from physical savings such as property and gold towards regulated financial products.

SBI Funds Management’s initial public offering is seeking to raise about ₹98.13 billion after its size was reduced following a pre-offer placement. The issue is entirely an offer for sale by State Bank of India and France-based Amundi India Holding, meaning the asset manager will not receive proceeds from the transaction.

State Bank of India is selling up to about 128.3 million shares, while Amundi India Holding is offering approximately 75.6 million shares. The joint venture partners had initially planned to sell a combined 203.7 million shares, representing 10% of the asset manager’s equity capital.

A pre-offer placement completed before the public issue raised ₹16.55 billion through the sale of a 1.42% stake to 30 investors. That transaction reduced the number of shares available through the main offering and lowered the IPO from its original size of about ₹116.93 billion.

At the upper end of the price band, SBI Funds Management is seeking a valuation of approximately ₹1.17 trillion. This would place it among the most highly valued listed asset managers, alongside HDFC Asset Management, Nippon Life India Asset Management and UTI Asset Management.

The offer opened on July 14 and will close on July 16. Investors can apply in lots of 26 shares, requiring a minimum investment of ₹14,924 at the top of the price band. The shares are expected to begin trading on the BSE and National Stock Exchange on July 21.

Up to half of the net offer has been reserved for qualified institutional buyers, while at least 15% is available for non-institutional investors. Retail investors have been allocated at least 35%. A separate portion is reserved for eligible State Bank of India shareholders, allowing them to apply under both the shareholder and applicable general categories.

SBI Funds Management is the country’s largest asset manager by average assets under management. Its scale is supported by State Bank of India’s extensive branch network, digital platforms and access to customers across cities, towns and rural markets.

The business manages equity, debt, hybrid, exchange-traded and passive investment products. Its distribution reach has helped it capture a substantial share of systematic investment plan accounts, which provide asset managers with a relatively stable stream of recurring investments.

The listing comes as the wider IPO market attempts to sustain investor demand amid volatile energy prices, geopolitical tensions and uneven foreign portfolio flows. Large offerings are being watched closely as a test of whether domestic institutions and retail investors can continue absorbing sizeable share sales.