Shares of SBI Funds Management are going to be listed on NSE and BSE on Tuesday, 21st July. Ahead of the listing, the company’s shares are commanding a good premium in the gray market, which is expected to result in a listing gain of about 18 percent over the issue price. The Rs 9,813 crore IPO, which was open for subscription between July 14 and July 16, received an overwhelming response from investors and was subscribed 41.66 times overall.
Institutional investors showed the most interest in this. The share of Qualified Institutional Buyers (QIB) was subscribed 140.11 times. The Non-Institutional Investor (NII) category was subscribed 22.51 times, while the Retail Individual Investor (RII) segment was subscribed 3.60 times.
The company had fixed the price band of Rs 545-574 per share. The public issue is an ‘Offer for Sale’ (OFS) of 17.10 crore shares entirely by the existing shareholders – State Bank of India (SBI) and Amundi. Since there is no new issue, SBI Funds Management will not get any money from the IPO, the entire amount will go to the selling shareholders. Post-listing, the total stake of the promoter and promoter group is expected to reduce from 98.2 per cent to 89.8 per cent, while public shareholding will increase to 10.2 per cent, which may increase liquidity and trading activity in the stock.
GMP of SBI Funds Management
Before the listing in the market, the gray market premium (GMP) of SBI Funds Management shares was ruling at around Rs 105 per share. Based on the upper issue price of Rs 574, this suggests a potential listing price of around Rs 679. Which is an estimated listing premium of about 18 percent. SBI Funds Management, the investment manager of SBI Mutual Fund, is India’s largest asset management company (AMC) by quarterly average assets under management (QAAUM).
As of March 2026, the company managed mutual fund QAAUM worth Rs 12.5 lakh crore, which is 15.3 percent of the total market. Formed in collaboration between State Bank of India and global asset manager Amundi, the AMC combines SBI’s large banking and distribution network with Amundi’s international investment expertise. According to brokerage firm Nirmal Bang, the company offers 128 investment schemes such as equity, debt, hybrid, ETF, index funds and overseas funds. Apart from mutual funds, it also offers Portfolio Management Services (PMS), Alternative Investment Fund (AIF), Specialized Investment Fund (SIF) and Advisory Mandate.
Strong retail reach and digital presence
AMC has built one of the largest investor networks in the country. According to Anand Rathi, by March 2026 it served 1.79 crore individual investors and managed 1.62 crore active SIP accounts. Including PMS and advisory mandate, the total QAAUM of the company was Rs 29.46 lakh crore.
Its distribution reach is also very large. With more than 1.32 lakh mutual fund distributors covering 98.2% of India’s pin codes, the company has a strong presence beyond the top 30 cities.
The company has also strengthened its digital ecosystem. During FY26, it processed an average of 13.1 lakh transactions every month, of which 94.3 per cent were done digitally. By the end of the financial year, its InvesTap platform had 39.7 lakh registered users, 33.9 lakh active users and more than 58 lakh downloads.
Systematic Investment Plans (SIP) remain the core driver of growth. AMC was managing 1.62 crore active SIP accounts, monthly SIP inflow of Rs 4,059 crore and SIP assets of Rs 1.73 lakh crore during FY 2026.
Financial position remains strong
SBI Funds Management has achieved consistent financial growth in the last three financial years. Revenue from operations increased from Rs 2,691 crore in FY 2024 and Rs 3,598 crore in FY 2025 to Rs 4,389 crore in FY 2026. The company’s consolidated profit after tax (PAT) increased to Rs 3,067 crore in FY 2026, while it was Rs 2,540 crore in FY 2025 and Rs 2,073 crore in FY 2024.
The company also maintained the best profitability in the industry. Its EBITDA margin increased to 79.1 per cent in FY2026 from 73.7 per cent in FY24 and 77.1 per cent a year ago, while return on equity (RoE) stood at 51.4 per cent, reflecting its strong earnings position.
The book-running lead managers of the IPO are Kotak Mahindra Capital, Axis Capital, BofA Securities India, HSBC Securities, ICICI Securities, Jefferies India, JM Financial, Motilal Oswal Investment Advisors and SBI Capital Markets. KFin Technologies is the registrar to the issue.
