SBI Funds reduces IPO size to Rs 9,813 crore after pre-offer placement. Will it impact listing gains?

Published 13 July 2026 · finance

SBI Funds Management has reduced the size of its IPO to Rs 9,813 crore from Rs 11,693 crore after raising about Rs 1,655 crore through

SBI Funds Management has reduced the size of its IPO to Rs 9,813 crore from Rs 11,693 crore after raising about Rs 1,655 crore through a pre-IPO placement to 30 anchor investors. The issue will open for subscription on July 14 and close on July 16. The IPO is entirely an offer-for-sale (OFS) by State Bank of India and Amundi India Holding. Since there is no fresh issue, SBI Funds Management will not receive any proceeds from the IPO.The pre-IPO placement was completed at Rs 574 per share, the upper end of the IPO price band. State Bank of India sold 28,832,748 equity shares, representing 1.42% of SBI Funds Management's pre-IPO equity capital. According to SBI's exchange filing, the bank signed the share purchase agreements on July 9. The transaction was scheduled to be completed by July 10.PI Opportunities Fund-II was the largest buyer, acquiring 3,484,320 shares for about Rs 200 crore. Investor Akash Bhanshali also bought 3,484,320 shares for nearly Rs 200 crore, while 3P India Equity Fund I purchased 2,613,240 shares worth about Rs 150 crore.Other investors in the pre-IPO placement included Malabar India Fund, Tata AIG General Insurance Company, Go Digit General Insurance, Anand Rathi Global Finance, Clarus Capital I, Carnelian Bharat Amritkaal Fund and Bennett Coleman & Co Ltd, along with other institutional and family office investors.Also Read: SBI Funds among 6 IPOs on investors' radar this week.

GMPs indicate listing gains up to 118%What does this mean?The company is still not raising fresh capital because the IPO remains a pure OFS. The money goes to the selling shareholders, not to SBI Funds Management. For investors, the key signal is that large investors were willing to buy shares before the IPO at the top end of the price band, which gives some comfort on demand and valuation.The smaller issue size can help bidding to some extent because fewer shares will now be available in the public offer. If demand stays strong, the reduced supply can improve subscription numbers, especially in institutional and HNI categories. It may also support sentiment around listing gains, helped by the current grey market premium of about 15%.However, the impact should not be overstated. SBI Funds Management is still a large IPO, and listing performance will depend on overall market mood, subscription strength, valuation comfort and demand for AMC stocks. The pre-IPO placement is positive for confidence, but it does not change the basic nature of the offer, which remains an OFS by existing shareholders.SBI Funds IPO GMPThe shares are proposed to be listed on the BSE and NSE on July 21.