SBI Funds Management IPO Sees 40x Demand On Closing Day; QIBs Lead, GMP At ₹92

The initial public offering (IPO) of SBI Funds Management attracted robust investor interest on the final day of bidding, with the ₹9,813-crore issue subscribed over 40 times as of 4:00 pm on Thursday, led by strong demand from qualified institutional buyers (QIBs).

According to data from the National Stock Exchange (NSE), the public issue received bids for 517.86 crore shares against 12.45 crore shares on offer, translating into an overall subscription of more than 40 times.

The QIB portion led the demand, getting subscribed 140.11 times, while the Non-Institutional Investors (NIIs) category was booked 22.47 times. The Retail Individual Investors (RIIs) segment was subscribed 3.45 times.

IPO Details And GMP Signals

According to market trackers Investorgain and IPO Watch, the grey market premium (GMP) stood at ₹92 per share on July 16. Based on the upper end of the price band of ₹574, the GMP implies a potential listing price of around ₹662, indicating an expected listing gain of nearly 16%, if current sentiment sustains.

SBI Funds Management has fixed the price band at ₹545-574 per share. The IPO is entirely an Offer for Sale (OFS) of 20.37 crore equity shares, meaning the company will not receive any proceeds from the issue. The entire proceeds will go to the selling shareholders—State Bank of India (SBI) and Amundi India Holding.

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.

Brokerages have maintained a constructive view on the IPO.

Swastika Investmart has assigned a 'Subscribe' rating, citing SBI Funds Management's leadership position in the domestic asset management industry, healthy profitability and reasonable valuations.

Geojit Financial Services has also recommended subscribing to the issue, noting that at the upper end of the price band, the company is valued at a price-to-earnings (P/E) ratio of 38 times, which it said is moderately lower than that of its listed peers