SBI Funds Management
If you have even a single share of State Bank of India (SBI), then there is a very good news for you. The biggest IPO of the year 2026, ‘SBI Funds Management IPO’, has opened for subscription from July 14. The price band of this issue, which will run till July 16, has been fixed at Rs 545 to Rs 574 per share. The most interesting thing is that the existing shareholders of SBI are getting a different advantage compared to common retail investors. They can bid not once but twice in this IPO, which increases their chances of getting share allotment to a great extent. Let us understand in detail how this entire process will work.
Who can take advantage of this special quota?
In this issue of SBI Funds Management, a separate quota has been reserved for the shareholders of the parent company (SBI). According to the rules, any investor who had at least one share of SBI in his demat account as on the date of filing of Red Herring Prospectus (RHP), i.e. July 7, 2026, is eligible to apply under this quota. If we look at the shareholding data of Bombay Stock Exchange (BSE), as of March 31, 2026, SBI had about 36.33 lakh retail shareholders. These millions of investors now have a direct opportunity to capitalize on this big opportunity.
How can an investor submit two applications?
When a good IPO comes in the stock market, every investor wants to get the allotment somehow. SBI shareholders have two independent ways to fulfill this wish. Eligible investors can submit two separate applications in this IPO. The first application can be made under the general ‘Retail Category’, while the second application can be made through the special ‘Shareholder Category’. Since these two categories are completely different from each other, investors get two independent opportunities to get shares. In simple language, even if there is disappointment from one place, there is still hope of getting shares from the other place.
How will the allotment process work?
Retail and shareholder categories are seen as two separate pools of shares. In both, the allotment decision is also taken completely independently. In the retail category, any investor can apply for a minimum of one lot, which includes 26 shares. If you apply for more than Rs 2 lakh, it will go in the High Net Worth Individual (HNI) category. When the issue is oversubscribed, shares in the retail quota are usually distributed through a computerized lottery system. On the other hand, allotment in shareholder quota is done on a proportionate basis, which makes it different from the retail process.
Disclaimer: This article is for information only and should not be considered as investment advice in any way. TV9 Bharatvarsha advises its readers and viewers to consult their financial advisors before taking any money-related decisions.
