Ahead of its ₹11,693 crore initial public offering, SBI Funds Management Ltd raised ₹1,655 crore from 30 marquee investors, according to a stock exchange notification. The pre-IPO share sale involved the divestment of 1.42% of State Bank of India's holding in its subsidiary, with 28.83 million shares sold at ₹574 each, the upper end of the IPO price band.
The transaction was executed through share purchase agreements between State Bank of India and the investors. Notable backers included Azim Premji's PI Opportunities Fund-II, 360 One, Neo Group, and Prashant Jain's 3P India Equity Fund, among others. The deal closed shortly after reports on July 9 indicated SBI Funds was set to raise around ₹1,500 crore in the pre-IPO round.
This pre-IPO fundraising marks the largest initial public offering in India this year so far, underscoring strong investor interest in the asset management sector. The ₹11,693 crore IPO positions SBI Funds among the top-tier fund management companies, reflecting growing market confidence. The pricing at the upper band signals robust demand, comparable to other major IPOs in the financial services space.
The IPO is scheduled to open soon, with the ₹574 per share price setting a benchmark for investor appetite. The successful pre-IPO round involving 30 investors demonstrates significant market support ahead of the public listing, which will be closely watched by market participants and analysts.