SBI Funds Management IPO: What is the reservation for SBI shareholders? Who is eligible to apply?

The initial public offering (IPO) of SBI Funds Management will open on July 14 and is estimated to raise ₹11,693 crore from the primary market. The issue will close on July 16, and is set to be the largest IPO of 2026 so far

SBI Funds Management IPO price band has been set at ₹545 - ₹574 per share. The issue comprises an offer for sale (OFS) of over 20.37 crore equity shares by promoters State Bank of India (SBI) and Amundi India Holding.

SBI will offload up to 12,83,34,397 equity shares, representing 6.3% of SBI Funds Management’s paid-up equity share capital, while Amundi India Holding will sell up to 7,53,74,842 shares, equivalent to a 3.7% stake in the OFS.

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

SBI Funds Management has reserved up to 1.3 crore equity shares, worth nearly ₹750 crore at the upper end of the price band, for eligible shareholders of State Bank of India.

The maximum application amount under the SBI shareholder reservation category is ₹2 lakh. However, unlike the employee quota, no price discount has been offered to SBI shareholders applying under the reserved category.

Separately, the company has reserved shares worth ₹170 crore for eligible employees, who will receive a discount of ₹54 per share while bidding for the IPO.

Shareholders who held shares of SBI as of the Red Herring Prospectus (RHP) filing date, July 8, are eligible to apply under the reserved shareholder category in the SBI Funds Management IPO.

According to the SBI Funds Management IPO RHP filed with SEBI, eligible SBI shareholders must have a valid Permanent Account Number (PAN) that is updated in SBI’s shareholder records. They must also hold a valid demat account, as IPO shares can be allotted only in dematerialised form.

The unlisted shares of SBI Funds Management are commanding a strong grey market premium. According to websites tracking the grey market, SBI Funds Management IPO GMP today is ₹86 per share.

SBI Funds Management IPO GMP signals that in the grey market, the shares are trading at ₹660 apiece, a premium of 15% to the issue price of ₹574.

Ankit Gohel is the Deputy Chief Content Producer at Livemint, specialising in financial markets, macroeconomics, and regulatory developments. With a strong focus on equity markets, primary issuances, and policy-driven market movements, he brings clarity to complex financial developments for investors and market participants. <br><br> With nine years of experience in business and financial journalism, Ankit’s approach is rooted in the belief that market reporting should go beyond headlines — connecting data, policy, and ground realities to deliver actionable insights. His work consistently bridges the gap between institutional analysis and investor understanding. <br><br> Ankit has spent three years at Livemint, where he currently helps drive market coverage, editorial strategy, and high-impact financial stories. Prior to this, he worked with leading business news networks such as CNBC-TV18, ET Now, TickerPlant News Service where he built deep expertise in stock market analysis, macroeconomic trends, primary markets, and coverage of key regulators including the RBI and SEBI. <br><br> Over the years, he has covered market cycles across bull and bear phases, IPO booms, liquidity shocks, and major policy shifts that reshaped investor sentiment. He has interviewed fund managers, corporate leaders, and policymakers, translating their perspectives into sharp, data-backed narratives. Ankit combines speed with accuracy — ensuring timely, credible, and insight-driven financial journalism that empowers both retail and institutional audiences.

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