State Bank of India (SBI) share price fell 1.62% on NSE in Tuesday’s trading session as SBI Funds Management IPO opened for subscription today, 14 July.

SBI shares opened at ₹1,033.30 today, as compared to previous close of ₹1,037 on Monday. The stock touched an intraday low of ₹1,026 on 14 July.

Why is SBI share price in focus?

SBI Funds Management, which operates under the SBI Mutual Fund brand, is a joint venture between the State Bank of India and Amundi. SBI owns a 61.86% stake in the company, while Amundi holds the remaining 38.14%.

A successful listing of SBI Funds Management could benefit SBI by unlocking the value of its investment, improving investor sentiment, and potentially increasing the market valuation of its stake in the asset management company.

As per the red herring prospectus (RHP), the bank acquired these shares at a weighted average cost of just ₹0.15 apiece, taking its total investment to around ₹19 crore.

At the upper end of the IPO price band, the value of SBI’s stake is estimated at nearly ₹68,670 crore, representing a gain of about 3,600 times its original investment cost.

Under the OFS, SBI plans to offload 12,83,34,397 equity shares. With an acquisition cost of just ₹0.15 per share, the total cost of these shares works out to around ₹1.92 crore. At the upper price band of ₹574 per share, the sale is expected to generate nearly ₹7,366.4 crore.

As a result, SBI is likely to earn an estimated profit of around ₹7,365 crore from the SBI Funds Management IPO.

SBI Funds Management IPO

SBI Funds Management IPO will open for subscription on Tuesday, July 14. SBI Funds Management is India’s oldest asset management company and serves as the investment manager for SBI Mutual Fund, which commenced operations in June 1987 as the country’s first mutual fund established outside the Unit Trust of India (UTI).

According to its draft red herring prospectus (DRHP), the company is also India’s largest passive asset manager, with passive quarterly average assets under management (QAAUM) of ₹3,99,953 crore through its exchange-traded funds (ETFs) and index funds as of December 31, 2025. This gave it a 29.6% share of India’s passive fund market.

The price band for the SBI Funds Management IPO has been set at ₹545– ₹574 per share. The company plans to raise ₹11,692.91 crore through a book-built issue, which consists entirely of an offer for sale (OFS) of 20.37 crore equity shares by existing promoters, State Bank of India (SBI) and Amundi India Holding.

The IPO is being managed by a consortium of book-running lead managers comprising Kotak Mahindra Capital Company, Axis Capital, BofA Securities India, HSBC Securities and Capital Markets (India), ICICI Securities, Jefferies India, JM Financial, Motilal Oswal Investment Advisors, and SBI Capital Markets.

Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.