SBI Funds Management IPO: SBI shareholders can apply in two categories and improve their allotment chances. Here’s how

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 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.

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.

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.

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.

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.