SBI Funds raises ₹1,655 crore in pre-IPO share sale

Ahead of its ₹11,693-crore initial public offering, SBI Funds Management Ltd has raised ₹1,655 crore from 30 marquee investors, said a late Thursday stock exchange notification.

State Bank of India has entered into share purchase agreements to divest 1.42% of its holding in its subsidiary. The transaction involves the sale of 28.83 million shares at a price of ₹574 per share, which is at the upper end of the IPO's price band.

Wipro founder Azim Premji's PI Opportunities Fund-II, Enam Holdings' Akash Bhanshali, veteran investor Prashant Jain's 3P India Equity Fund 1, Tata AIG General Insurance Co., investment manager Neo Group, and private wealth major 360 One were the top investors in the pre-IPO round.

Sumeet Nagar's Malabar India Fund, Go Digit General Insurance, Anand Rathi Global Finance, ChrysCapital-backed Clarus Capital I, Malakshmi Trust of snacks major Haldiram's family, Temasek-backed Dymon Asia Capital, Sun Pharma promoters' family office Alrox Enterprises, Times Group parent Bennet Coleman, Vikas Khemani's Carnelian Bharat Amritkaal Fund and other institutional investors also participated in the round.

Mint reported on 9 July that SBI Funds was set to close a pre-IPO round of around ₹1,500 crore.

The asset manager will open its public issue for subscription on 14 July. At the upper end of the price band ( ₹545-574), the company will command a market capitalization of nearly ₹1.17 trillion.

The IPO will consist entirely of an offer for sale by its promoter shareholders. SBI will sell up to 128.3 million shares, representing a 6.3% stake, while joint venture partner Amundi India Holding will offload up to 75.6 million shares, equivalent to a 3.7% stake. Together, SBI and Amundi currently hold around 98% of SBI Funds Management.

Before June 2011, Amundi India Holding’s stake was held by Société Générale SA.

SBI Mutual Funds’ IPO will be the first billion-dollar-plus launch this calendar year. After a slow start, multiple large IPOs were filed in June as tensions in West Asia seemed to settle. However, US President Donald Trump’s comments on Wednesday, declaring an end to the ceasefire with Iran, have shaken secondary market sentiment in India, with the Sensex and the Nifty plunging over 2% on Wednesday to log their worst single-day fall since March-end.

“Markets will always be uncertain, but the trust in our company will always be there,” said Debasish Mishra, the newly appointed managing director and chief executive of the fund manager. “Even if market conditions were worse than the current situation, our launch timeline would not have been affected.”

The IPO will mark the culmination of a year-long process that began in August 2025, with SBI chairman C.S. Setty saying that SBI General Insurance and SBI Mutual Fund were under consideration for public listing. At that time, he had not given any specific timeline or valuations for the IPOs.

Established in 1992, the company offers financial services including mutual funds, portfolio management services, offshore funds, alternative investment funds and offerings through GIFT City. It is now planning on expanding its product offerings and investment solutions, including passive and alternative offerings, said executive president Srinivas Jain.

Agnidev is a business journalist with over two years of reporting experience tracking the intersection of capital, policy, and corporate strategy in India.<br><br>He joined Mint in December 2025, after a stint at NDTV Profit (erstwhile BQ Prime). At Mint, Agnidev focuses on the high-stakes world of the Indian capital market, specialising in mergers and acquisitions, burgeoning IPOs, and the investment banking industry.<br><br>Backed by a rigorous, data-driven approach, Agnidev frequently breaks news on the valuation cycles, deal pipelines and listing strategies of India’s most prominent companies. His reportage offers deep dives into the operational health of market leaders across the corporate landscape, providi...