SBI Sells 1.42% Stake in SBI Funds Management Ahead of ₹11,600 Crore IPO

Byrahuldilippatil001@gmail.com June 27, 2026

State Bank of India (SBI) has made a significant move in the financial market by selling a 1.42% stake in its asset management arm, SBI Funds Management Ltd (SBIFM), to 30 investors for ₹1,655 crore in a pre-IPO placement round.

SBI Sells Stake in SBI Funds Management Ahead of IPO

The lender sold the stake at ₹574 per share, which is also the higher end of the IPO price band, according to an exchange filing.

The sale is part of the pre-IPO placement ahead of the proposed initial public offering (IPO) of SBIFM, the asset management arm of SBI.

Key Investors in the Pre-IPO Placement

SBI sold the shares to investors including 360 ONE funds, Tata AIG General Insurance Company, Go Digit General Insurance, Bennett Coleman, Anand Rathi Global Finance, Capri Global Ventures and Carnelian Bharat Amritkaal Fund.

Market Impact and IPO Details

The entire IPO is an Offer for Sale (OFS) by promoters SBI and Amundi India Holding.
SBI Funds Management’s ₹11,600-crore maiden public equity offering will open on July 14 and conclude on July 16.
The sale is part of the pre-IPO placement ahead of the proposed initial public offering (IPO) of SBIFM, the asset management arm of SBI.
One of the largest IPOs in recent times, it is set to be succeeded by mega issuances from largest stock exchange NSE and telco Jio Platforms.

Key Takeaways

SBI has sold a 1.42% stake in SBI Funds Management Ltd (SBIFM) to 30 investors for ₹1,655 crore.
The sale is part of the pre-IPO placement ahead of the proposed initial public offering (IPO) of SBIFM.
The IPO is expected to be one of the largest in recent times, with SBI Funds Management’s ₹11,600-crore maiden public equity offering.

FAQs

What is the size of the IPO?

The IPO is expected to be ₹11,600 crore, making it one of the largest in recent times.

Who are the promoters selling their stake in the IPO?

The promoters selling their stake in the IPO are SBI and Amundi India Holding.

What is the price at which SBI sold the stake in SBIFM?

SBI sold the stake at ₹574 per share, which is also the higher end of the IPO price band.

Conclusion

State Bank of India’s move to sell a 1.42% stake in its asset management arm, SBI Funds Management Ltd (SBIFM), to 30 investors for ₹1,655 crore is a significant development in the financial market. As the IPO of SBIFM is set to open on July 14, investors are eagerly waiting to see how the market reacts to this mega issuance. With the sale of the stake, SBI has taken a step towards monetizing its asset management arm, and the IPO is expected to be one of the largest in recent times.