SBI Funds Management IPO: SBI likely to earn ₹7,365 crore from share sale; Should you buy the PSU stock?

SBI Funds Management, India's largest asset management company by QAAUM, will open its IPO on July 14 with a price band of ₹545-574 per share, aiming to raise ₹11,692.91 crore through a pure offer for sale of 20.37 crore equity shares. SBI will sell a 6.3% stake (12.83 crore shares) and earn an estimated ₹7,365 crore in profit, given its acquisition cost of just ₹0.15 per share, while Amundi India Holding will offload a 3.7% stake for about ₹4,293.73 crore in profit. At the upper price band, SBI Funds Management's post-listing market cap is expected to be around ₹1.17 lakh crore, with listing scheduled for July 21.