SBI Funds raises ₹1,655 crore anchor ahead of ₹11,693-cr IPO
SBI Funds Management has secured ₹1,655 crore from marquee investors ahead of its ₹11,693-crore listing, testing institutional risk appetite amid a sudden sell-off in Indian equities.
SBI Funds Management has raised ₹1,655 crore from 30 institutional investors ahead of its upcoming public issue. Parent State Bank of India sold a 1.42% stake, equating to 28.83 million shares at ₹574 apiece. This price sits at the upper end of the IPO's ₹545-574 price band.
The anchor book drew capital from prominent domestic and foreign names. Key participants included Azim Premji’s PI Opportunities Fund-II, veteran investor Prashant Jain’s 3P India Equity Fund 1, Tata AIG General Insurance, and 360 One. The round also attracted the family offices of Sun Pharma and Haldiram's, alongside Dymon Asia Capital and Enam Holdings.
The robust anchor demand arrives at a volatile moment for Indian markets. The benchmark Sensex and Nifty indices posted their worst single-day drop since March on Wednesday after U.S. President Donald Trump announced an end to a ceasefire with Iran. Despite the broader market turmoil, the asset manager is proceeding with its timeline.
"Markets will always be uncertain, but the trust in our company will always be there," said Debasish Mishra, managing director and chief executive of SBI Funds. "Even if market conditions were worse than the current situation, our launch timeline would not have been affected."
The public issue, set to open on July 14, will be the first billion-dollar-plus listing in India this calendar year. The offering consists entirely of an offer for sale by promoter shareholders.
SBI will divest a 6.3% stake, representing 128.3 million shares. Joint venture partner Amundi India Holding will sell a 3.7% stake, or 75.6 million shares. Together, the two entities currently hold roughly 98% of the company.
At the top of the price band, SBI Funds will command a market capitalization of nearly ₹1.17 trillion. The listing will cap a year-long process that began in August 2025, when SBI chairman C.S. Setty first disclosed the fund manager was being considered for a public float.
Established in 1992, the firm is now looking to expand its product suite. Executive president Srinivas Jain said the company plans to grow its passive and alternative investment offerings. This expansion will build upon its existing mutual fund, portfolio management, and offshore fund businesses.
