SBI Funds Raises $278.5 Million Ahead of $1.2 Billion IPO

SBI Funds Management, India's largest asset manager, has raised $278.5 million from anchor investors ahead of its $1.2 billion initial public offering (IPO) after allocating 46.4 million shares at 574 rupees each, the top of the announced price range.

According to a company filing, the anchor allocation included major institutional investors such as the Government of Singapore, the Monetary Authority of Singapore, the Abu Dhabi Investment Authority, Norway's sovereign wealth fund, and investment funds managed by BlackRock.

The Government of Singapore received 2.7 million shares, representing 5.72% of the anchor allocation, while the Monetary Authority of Singapore was allocated 1.04%. The Abu Dhabi Investment Authority, Norway's sovereign wealth fund and BlackRock funds each acquired 1.6 million shares, while Life Insurance Corporation of India (LIC) and Capital Group Global Equity Fund each purchased 3.1 million shares. Domestic mutual funds, including those managed by HDFC, ICICI and Axis, accounted for 37.2% of the anchor book, worth around $103.5 million.

SBI Funds is a joint venture between the State Bank of India, the country's largest lender, and Amundi, Europe's largest asset manager. The IPO consists entirely of existing shares being sold by the two shareholders, with 203.7 million shares offered and no new shares being issued by the company.

The public subscription period runs from July 14th to 16th, with the shares priced between 545 and 574 rupees. The company is seeking a valuation of up to 1.17 trillion rupees, with trading on Indian stock exchanges expected to begin on July 21st, 2026. Separately, the State Bank of India said last week it would sell a 1.42% stake in SBI Funds to 30 investors for 16.55 billion rupees in a pre-IPO placement.