SBI Funds ₹11,693cr IPO opens alongside Alpine Texworld
State Bank of India and Amundi are divesting stakes in India's largest asset manager through a massive ₹11,692.91 crore offer, while a smaller textile IPO tests market appetite for manufacturing expansion.
Two Indian initial public offerings opened for subscription on July 14. The larger offering is SBI Funds Management, a ₹11,692.91 crore issue entirely comprising an offer for sale. Alongside it, Alpine Texworld launched a ₹126.25 crore fresh issue to fund capacity expansion.
The SBI Funds issue represents a major secondary market transaction rather than a capital raise. Parent State Bank of India is selling a 6.3% stake, reducing its holding from 61.76% to 55.46%. Partner Amundi India Holding is divesting a 3.7% stake, bringing its holding down to 32.56%. Ahead of the public issue, the company secured ₹1,655 crore by placing 2.88 crore shares with 30 institutional investors.
Grey market activity suggests strong initial demand, with the shares commanding a premium of ₹100 over the upper price band of ₹574. At that upper band, the stock is priced at 38.1 times its estimated FY26 earnings per share. Brokerage Swastika Investmart noted this is a discount to the industry average of 41.6 times, driven by the company's scale of ₹12.5 lakh crore in quarterly average assets under management.
The brokerage recommended investors "Subscribe for Long Term," highlighting a 43.02% return on net worth and an 81.56% EBITDA margin. However, investors face the structural reality that the asset manager's future earnings remain tied to broader market performance and the pace of AUM growth rather than new capital deployment.
In contrast, the Alpine Texworld offering is a primary raise aimed at expanding grey fabric production at a new weaving unit in Ahmedabad. The textile manufacturer is issuing 1.2 crore fresh shares at a price band of ₹100 to ₹105. Proceeds are also earmarked for debt repayment, as the company currently carries a debt-to-equity ratio of 2.35.
Swastika Investmart assigned a "Neutral" rating to the textile issue. While Alpine Texworld posted a return on equity of 33.85% and return on capital employed of 17.56% for FY26, analysts warned that the 18.49 times FY26 earnings valuation is tight for a commoditised business. Sustaining margins in the competitive textile sector remains a key risk.
Both offerings close on July 16, with share allotments scheduled for July 17. SBI Funds Management and Alpine Texworld are both set to begin trading on the BSE and NSE on July 21. Retail investors face a minimum investment of ₹14,924 for SBI Funds and ₹14,910 for Alpine Texworld.
