The IPO of SBI Funds Management Limited was fully subscribed on the second day of bidding on Wednesday. According to NSE data till 11:21 am, this IPO worth Rs 9,812.91 crore received bids for 14,51,33,924 shares against 12,45,63,536 shares, making it 1.17 times subscribed. 2.65 times subscription was received in the category of non-institutional investors. The quota for retail investors received 97 percent subscription and the portion reserved for Qualified Institutional Buyers (QIBs) received 8 percent subscription. SBI Funds Management had earlier raised Rs 2,663 crore from anchor investors.
The anchor book includes global investors such as GIC, Abu Dhabi Investment Authority, Capital World Investors, BlackRock, Fidelity Management & Research, Goldman Sachs Asset Management and Norges Bank as well as leading domestic institutions such as Life Insurance Corporation of India (LIC), HDFC Mutual Fund (MF), ICICI Prudential MF, Nippon India MF and HDFC Life Insurance. Took part. This IPO will close on 16th July. For this, the price band has been fixed at Rs 545-574 per equity share.
How much stake is SBI selling?
The public issue is entirely an offer for sale (OFS) of equity shares worth up to Rs 17.09 crore by existing shareholders – State Bank of India (SBI) and Amundi. SBI will sell its 6.3 percent stake, while Amundi will sell 3.7 percent stake. After the listing, SBI’s stake will come down to 55.46 percent from 61.76 percent, while Amundi’s stake will come down to 32.56 percent. The issue size was earlier proposed to be Rs 11,693 crore, but it was reduced after the company completed a pre-IPO placement of about Rs 1,880 crore. At the upper end of the price band, SBI Funds Management has a valuation of around Rs 1.2 lakh crore. SBI Funds Management, established in 1987, is India’s largest asset management company in terms of quarterly average assets under management (QAAUM). As of March 31, 2026, it had Rs 12.51 lakh crore in mutual funds and 15.3 percent market share.
SBI Funds Management IPO GMP
The gray market premium (GMP) of SBI Funds Management IPO is currently around Rs 93 per share, which is more than 16 per cent more than the upper price band of Rs 574. If this trend continues, the stock may be listed at around Rs 667, which can give good listing gains to investors. Although GMP is an informal indicator and can fluctuate significantly before listing, the current premium reflects the market’s strong confidence in the IPO of the country’s largest mutual fund asset manager.
broker advice
According to the ET report, Nirmal Bang has given a “Subscribe” rating to this IPO from a medium to long-term perspective. The company says that SBI MF’s market leadership, strength of distribution, good profits and good outlook of the industry are in favor of this issue. Anand Rathi has also advised to “Subscribe”. The brokerage says the IPO is fully priced, but the leadership of SBI Funds Management, the asset-light model, the parent company of SBI-Amundi and the retail investor base are in favor of the offer.
Financial Performance and Valuation
SBI Funds Management has achieved consistent financial growth in the last three years. Earnings from operations increased to Rs 4,389 crore in FY26, compared to Rs 3,598 crore in FY25 and Rs 2,691 crore in FY24. Consolidated profit after tax (PAT) increased to Rs 3,067 crore in FY26, from Rs 2,540 crore a year ago and Rs 2,073 crore in FY24. The company has also maintained the best profitability in the industry. Its EBITDA margin improved to 79.1 per cent in FY26 from 77.1 per cent in FY25 and 73.7 per cent in FY24, while return on equity (RoE) stood at an impressive 51.4 per cent.
