SBI Funds IPO To Open On 14 July; Promoters To Sell 20.37 Crore Shares

SBI Funds has filed its Red Herring Prospectus (RHP) for its initial public offering (IPO), with the issue scheduled to open on 14 July and close on 16 July.

The public issue is entirely an offer for sale (OFS), meaning the company will not receive any proceeds from the listing. A total of 20.37 crore shares will be sold by the existing promoters.

State Bank of India (SBI) will offload 12.83 crore shares, representing approximately 6.3% of the company's equity. Its joint venture partner, Amundi India, will sell 7.54 crore shares, accounting for around 3.7% of the equity.

The company has fixed the price band at ₹545-₹574 per equity share,

Anchor investors will have the opportunity to place bids on 13 July, one working day before the IPO opens.

IPO Structure And Investor Quotas

The IPO follows the standard SEBI allocation norms for book-built public issues:

• Qualified Institutional Buyers (QIBs): Up to 50% of the net offer.

• Non-Institutional Investors (NIIs/HNIs): At least 15% of the net offer.

• Retail Individual Investors (RIIs): At least 35% of the net offer.

Unlike some subsidiary IPOs in recent years, there is no shareholder reservation quota for existing SBI shareholders. Similarly, the offer does not include an employee reservation or discount, meaning all eligible investors must apply under their respective investor categories.

Valuation And Book-Running Managers

SBI Funds, jointly owned by SBI and Amundi SA, is reportedly targeting a valuation of around ₹1.17 lakh crore. This is lower than the earlier valuation expectations.

The company has appointed nine investment banks to manage the offering, including Kotak Mahindra Capital, Axis Capital, SBI Capital Markets, JM Financial, and HSBC.

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SBI Shares Ended Lower

Shares of State Bank of India ended the trading session 2.04% lower at ₹1,016.90, broadly in line with the weakness in the wider market. The stock traded between ₹1,011.70 and ₹1,038.30 during the day.

Over the past 52 weeks, SBI shares have ranged from ₹786.55 to ₹1,234.70 and remain 25.13% higher than their level a year ago. The bank currently has a market capitalisation of ₹9.41 lakh crore and trades at a price-to-earnings (P/E) ratio of 11.25.