SBI Funds Management's (SBI Mutual Fund) initial public offering (IPO), valued at up to Rs 11,693 crore, is set to open for public subscription on July 14, with up to 1.3 crore shares reserved for eligible SBI shareholders.The IPO, set to be the largest public issue of 2026 so far, will open for subscription from July 14 to July 16 at a price band of Rs 545-574 per share. The issue comprises an offer for sale (OFS) of over 20 crore shares by State Bank of India (SBI) and Amundi India Holding. Share allotment is expected on July 17, with the stock likely to list on the exchanges on July 21.What portion is reserved for SBI shareholders?The company has reserved up to 1.3 crore shares valued at nearly Rs 750 crore for allocation to eligible shareholders of State Bank of India (SBI). The maximum bid amount under the SBI shareholder reservation portion stands at Rs 2 lakh.Notably, there is no discount for existing SBI shareholders under the shareholder reservation category. Meanwhile, shares worth Rs 170 crore have also been reserved for eligible employees, who will receive a discount of Rs 54 per share when bidding. Of the total issue, 35% has been reserved for retail investors, 5% for small HNIs, 10% for big HNIs and the remaining 50% for qualified institutional bidders (QIBs).SBI will sell up to 12.83 crore shares through the offer, representing 6.3% of SBI Funds Management’s paid-up equity share capital. Amundi India Holding will sell up to 7.54 crore shares, representing 3.7% of the company’s paid-up equity share capital.Also read: SBI Funds Management sets IPO price band at Rs 545–574 for Rs 11,693 crore public offerWho are the eligible SBI shareholders?SBI shareholders who owned the shares of the PSU lender as on the date of the red herring prospectus, that is, July 8 (Wednesday), will be eligible to apply under the reserved shareholder portion in SBI Funds Management's IPO. “Eligible SBI Shareholders would need to have a valid PAN and their PAN should be updated with the register of shareholders maintained with State Bank of India. Further, Eligible SBI Shareholders would need to have a valid demat account and details, as Equity Shares can only be Allotted to Eligible SBI Shareholders having a valid demat account,” the company said in its IPO papers filed with SEBI.SBI Funds Management is the investment manager of SBI Mutual Fund, one of India’s largest asset management businesses. For SBI, the IPO will partly monetise its stake in the asset management subsidiary. The offer will also provide a partial exit route for Amundi India Holding.Also read: How India's largest bank is turning a tiny cost into mindboggling 382,567% profitSBI Funds Management IPO GMPAhead of listing, the unlisted shares of SBI Funds Management IPO are trading with a grey market premium (GMP) of more than 13% at Rs 649 apiece, over the IPO price of Rs 574 apiece, according to data in sites tracking grey market trends.It is important to note that the IPO entirely comprises an offer for sale, which means that none of the issue proceeds will go to the company as they will be received by the selling shareholders.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)