SBI funds IPO sets record with ultra-low banker fees despite Rs 9,813 crore issue

India's largest initial public offering (IPO) of 2026 has drawn attention not only for its size but also for the unusually low fees paid to investment bankers. SBI Funds Management, which raised ₹9,813 crore through its IPO, is estimated to pay just about $479,000 (around ₹4.1 crore) in total fees to a syndicate of nine investment banks. The fee works out to roughly 0.04% of the issue size, making it one of the lowest underwriting fee structures seen in a major Indian public offering.

The IPO attracted strong investor demand, with bids worth several times the shares on offer. Market experts said the low fees reflect the prestige associated with managing a high-profile public issue for India's largest mutual fund house, as well as intense competition among investment banks for marquee mandates. The offering also benefited from the company's strong market position, reducing the marketing effort typically required for large IPOs.

SBI Funds Management, a joint venture between State Bank of India and Amundi, manages assets worth over ₹12.5 trillion. The successful listing is expected to boost confidence in India's IPO market, with several large public offerings lined up in the coming months. Analysts believe the deal could encourage more issuers to negotiate lower underwriting costs for future mega IPOs.