The final bidding day for the SBI Funds Management IPO is here. The issue has already been subscribed well over 14 times. Once the subscription window closes, investors will shift their attention to the next important step – the allotment process.
For many applicants, one question stands out. Those who applied under the shareholder category want to know whether this reserved quota improves their chances of getting shares. Since allotment in this category follows a different method from the retail category, many are also wondering if there is an ideal bidding strategy.
So, how does the shareholder category work? And once bidding closes, how can investors check whether shares have been allotted? Here’s a look.
Is there an ideal bidding strategy? Experts weigh in
With the shareholder category already seeing strong demand, many investors are trying to understand whether applying for more lots can improve their chances of receiving shares.
Sharing her view with financialexpress.com, Geetanjali Kedia, Chief Analyst at SPTulsian Investment Advisers, said, “The shareholder category has a proportionate allotment. So, the chances of getting the shares are higher, but I am expecting huge subscription in each of the categories.”
She explained, “The shareholder category is already subscribed about four times, and even the retail category will likely see much higher subscription on the last day. So, I do not know if any strategy will honestly work. You can bid in the shareholder category, but I think it will be like a marginal difference.”
Sunil Jain, Head of Equity Research – Retail at Nirmal Bang, offered a different perspective. He said, “In the shareholder category one should apply for 338 shares just below Rs.2 lakh. Also, the existing shareholder of SBI can apply in the retail or HNI category.”
Eligible SBI shareholders can submit two separate applications – one under the shareholder reservation category and another under either the retail or the Non-Institutional Investor (NII) category, depending on the application amount.
Since these are separate allocation pools, each application is considered independently during the allotment process.
How does the shareholder category work?
Unlike the retail category, where oversubscription usually leads to a computerised lottery, the shareholder category follows a proportionate allotment process.
This reserved category is available only to eligible State Bank of India (SBI) shareholders who held SBI shares on July 7, 2026 mentioned in the Red Herring Prospectus (RHP).
Since the shareholder pool has its own reserved allocation, investors in this category compete only with other eligible SBI shareholders instead of the broader retail investor base.
How proportionate allotment works: An example
Suppose the shareholder category is subscribed 10 times. In that case, an investor applying for one lot would have roughly a 1-in-10 chance of getting one lot. As the number of lots applied for increases, the chances of receiving shares also improve. An investor applying for 10 lots, for instance, could receive at least one lot under this hypothetical example.
This is only an example to explain how proportionate allotment works. The actual allotment will depend on the final subscription level and the approved basis of allotment after the IPO closes.
What happens after the SBI Funds Management IPO closes?
The SBI Funds Management IPO opened on July 14 and closes on July 16. The company has fixed the price band at Rs 545 to Rs 574 per share, while investors are required to bid for a minimum of 26 shares and in multiples thereafter.
The issue is entirely an Offer for Sale (OFS), with existing shareholders State Bank of India and Amundi India Holding selling part of their stakes. As there is no fresh issue of shares, the company itself will not receive any proceeds from the IPO.
The basis of allotment is expected to be finalised on July 17, while the shares are tentatively scheduled to list on the NSE and BSE on July 21.
How can investors check the allotment status?
Once the allotment is finalised, investors can check their application status through multiple platforms.
The first option is the BSE website. This is where applicants can select the issue name. Thereafter, enter their PAN or application number and view the allotment after completing the verification process.
Another option investors can check the status is through the NSE IPO application tracking portal by entering their application details and PAN.
The third option is the registrar, KFin Technologies. Here, the applicants can search using their PAN, application number, Demat account details or bank account number.
After the allotment is completed, successful applicants will receive shares in their Demat accounts. Similarly, refunds or the release of blocked funds will be processed for those who do not receive an allotment.
Disclaimer: Investment in the securities market is subject to market risks; read all related documents carefully before investing. The information provided here includes third-party analyst viewpoints and general IPO allotment mechanics for educational purposes, and does not constitute a direct recommendation or solicitation to buy or sell. For specific financial advice tailored to your risk profile, please consult a SEBI-registered investment advisor. This disclaimer has been generated using AI to support user well-being and responsible content consumption.