State Bank of India (SBI) has raised ₹1,655 crore by selling a 1.42% stake in its asset management subsidiary, SBI Funds Management Ltd (SBIFM), ahead of the company’s much-awaited Initial Public Offering (IPO). The stake sale was completed through a pre-IPO placement involving 30 institutional investors, reflecting strong confidence in India’s largest mutual fund house.
According to the bank’s regulatory filing, SBI sold 2.88 crore equity shares, representing 1.415% of SBIFM’s pre-offer share capital, at ₹574 per share, which is also the upper end of the IPO’s price band. The transaction was executed through individual share purchase agreements signed on July 9, generating total proceeds of ₹1,655 crore.
Several prominent institutional investors participated in the pre-IPO placement, including 360 ONE funds, Tata AIG General Insurance, Go Digit General Insurance, Bennett Coleman, Anand Rathi Global Finance, Capri Global Ventures, and Carnelian Bharat Amritkaal Fund, among others.
SBI Funds Management’s ₹11,600-crore IPO is scheduled to open for subscription on July 14 and close on July 16. The public issue is entirely an Offer for Sale (OFS) by the existing promoters—State Bank of India and Amundi India Holding—with no fresh equity being issued by the company.
The IPO is expected to be one of the biggest public offerings in India’s financial sector this year and is likely to be followed by other high-profile listings, including those of the National Stock Exchange (NSE) and Jio Platforms.
Speaking ahead of the issue, the company’s management expressed confidence in investor interest, stating that several large institutional investors are expected to announce their participation during the IPO process over the coming days.
The successful pre-IPO placement highlights the strong demand for quality financial services companies and reinforces investor confidence in India’s rapidly expanding asset management industry.
Disclaimer: This news has been rewritten for publication purposes. While every effort has been made to ensure accuracy, some details may contain inadvertent errors or omissions. Readers are advised to refer to official sources for complete information.
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