SBI Funds Management IPO: Anchor book oversubscribed 20x; raises ₹2,663 crore from marquee global investors

Ahead of the opening of its initial public offering (IPO) on Tuesday, SBI Funds Management on Monday raised ₹2,663 crore from anchor investors, with the anchor book reportedly oversubscribed by more than 20 times, driven by robust demand from global sovereign wealth funds, asset managers and domestic institutional investors.

The asset management arm of SBI Mutual Fund allotted 4.64 crore equity shares to 129 anchor investors at ₹574 per share, the upper end of the IPO price band, according to a stock exchange filing released on Monday.

The ₹9,813-crore IPO, which is entirely an offer for sale (OFS), opens for public subscription on Tuesday. At the upper end of the price band of ₹545-574 per share, the offering values the asset management company at around ₹1.17 lakh crore, making it one of the largest IPOs in India this year.

According to exchange data, the anchor investor list includes prominent global names such as GIC, Abu Dhabi Investment Authority (ADIA), Government of Singapore, Monetary Authority of Singapore, Capital World Investors, BlackRock, Fidelity Management & Research, Goldman Sachs Asset Management, and Norges Bank.

Domestic participants include Life Insurance Corporation of India (LIC), HDFC Mutual Fund, ICICI Prudential Mutual Fund, Nippon India Mutual Fund, Axis Mutual Fund, and HDFC Life Insurance. Domestic mutual funds accounted for about 37% of the anchor book, with 23 mutual funds investing through 70 schemes.

Among the key allocations, HDFC Mutual Fund and ICICI Prudential Mutual Fund were allotted shares worth ₹200 crore each, while GIC, Capital World Investors, and LIC received allocations of around ₹180 crore apiece.

The Government of Singapore was allocated approximately 2.7 million shares, representing about 5.7% of the anchor book, while the Monetary Authority of Singapore received just over 1%. ADIA, Norges Bank, and BlackRock were each allotted roughly 1.6 million shares. Meanwhile, LIC and Capital Group Global Equity Fund received allocations of around 3.1 million shares each.

Last week, the company raised ₹1,654.99 crore through a pre-IPO placement, which saw participation from investors including 3P India Equity Fund 1, Tata AIG General Insurance Company, Dymon Asia Multi-Strategy Investment (Singapore) Pte. Ltd., and Bennett Coleman & Co. Ltd., among others.

The pre-IPO placement came ahead of the company's proposed public issue, which comprises an offer for sale by existing shareholders State Bank of India (SBI) and France's Amundi India Holding.

As part of the OFS, SBI will divest up to 12.83 crore equity shares, representing a 6.3% stake, while Amundi India Holding will sell up to 7.56 crore shares, equivalent to a 3.7% stake. Together, the two promoters, who currently own nearly 98% of SBI Funds Management, will divest around 10% of the company.

For SBI, the listing represents one of the biggest value-unlocking events in its corporate history. The country's largest lender owns a 61.73% stake in SBI Funds Management, a joint venture with Amundi, which holds a 36.26% stake.

SBI currently owns around 126 crore shares in SBI Funds Management. According to the draft red herring prospectus (DRHP), the lender acquired these shares at a weighted average cost of just ₹0.15 per share, translating into a total investment of about ₹19 crore.

At the upper end of the IPO price band, SBI's stake is valued at nearly ₹72,300 crore, representing an appreciation of roughly 3,800 times its original investment.

The SBI Funds Management IPO will close on July 16, while the basis of allotment is expected to be finalised on July 17. The company's shares are scheduled to list on the NSE and BSE on July 21, 2026.