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SBI Funds Management made a strong market debut on July 21, with shares opening above the IPO price but below grey market expectations
The stock opened at Rs. 613.30 on NSE against the IPO price of Rs. 574 and Rs. 610 on BSE (6.27% premium). Investors who received allotments gained around 6.85% at the NSE opening price compared with the issue price. The stock rose further on the day, to an intraday high of Rs. 624.90, which was nearly 9% up from its issue price.
Despite the premium listing, the debut was below grey market expectations. Ahead of the listing, the grey market premium was at Rs. 95.5, suggesting a listing price of Rs. 669.5, representing a premium of 16.64%.
The Rs. 9,812.91 crore SBI Funds Management IPO was open for subscription from July 14 to July 16, while the allotment was finalised on July 17. The issue was entirely an offer for sale (OFS) of around 17.09 crore equity shares by existing promoters State Bank of India and Amundi, with no new issue portion.
The price band for the IPO was set at Rs. 545 to Rs. 574 per share. Ahead of the issue, the company raised an anchor investment of Rs. 2,663 crore. The offer size was earlier expected to be higher, but it was reduced by Rs. 1,880 crore following a pre-IPO placement.
The IPO is oversubscribed by 41.66 times on average, according to NSE data. The category that had the highest demand was the QIB with 140.11 times subscription, followed by the NIIs with 22.51 times and retail investors with 3.60 times.
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“It’s a good week for India’s asset management industry. What began with the AMC listings of 2017-18 continued this week — India’s largest mutual fund houses, managing more than half of the industry’s Rs. 82 lakh crore AUM, are now all listed on the public markets,” emphasised Gopal Jain, Managing Director & CEO at Gaja Alternative Asset Management.
Shivani Nyati, Head of Wealth at Swastika Investmart Ltd, emphasised that the company’s long-term investment story remains strong, citing its leadership in the asset management industry, SBI-backed brand, large distribution network, scalable asset-light business model and relatively comfortable valuation compared to peers.
Nyati said IPO allottees can continue to hold the stock over a long-term perspective, while fresh investors may consider accumulating on dips. For short-term traders, she suggested maintaining a stop-loss around Rs. 585-590. Overall, she said the outlook remains positive, and the stock is suitable for long-term investors looking to benefit from the growing mutual fund industry in India.
Established in 1992, SBI Funds Management is India's biggest asset management firm by AUM and is a joint venture between SBI and Amundi. During FY26, it generated a total income of Rs. 4,969 crore.
