Top News

SBI Funds Management IPO GMP was in focus on the last day of bidding as the grey market premium improved, reflecting healthy listing expectations for India’s largest asset management company. The Rs 9,813-crore public issue closes for subscription today, July 16, with strong demand from non-institutional investors, while retail participation and institutional investors are expected to put in more bids in the final hours. According to the latest available data, the IPO attracted 2.82 times the number of bids in aggregate.

The NII portion was the strongest category with a subscription of 6.59 times. The retail investors subscribed 1.71 times and the QIB segment was subscribed 1.50 times. The employee quota was oversubscribed 2.27 times and the shareholder portion was almost four times.

Positive Listing Expectations Implied by Grey Market Premium

The grey market continued to indicate positive listing sentiment ahead of the issue close.

Market observers said the SBI Funds Management IPO was quoting a grey market premium (GMP) of around Rs 92 per share on Thursday against around Rs 88 a day ago. The upper end of the IPO price band of Rs 574 implies a listing price of close to Rs 666 per share, indicating a potential listing gain of nearly 16%.

However, investors should be aware that the grey market is unofficial and GMP can change quickly with market sentiments. It does not promise listing performance.

Price Band, Lot Size & Important Dates

The IPO is priced between Rs 545 and Rs 574 per share. Applications can be made in lots of 26 equity shares or in multiples thereof.

The public issue opened on July 14 and closes today, i.e., July 16.

If the schedule remains unchanged, the basis of allotment is expected to be finalised by July 17. Successful applicants may receive refunds and credits of shares to their demat accounts on July 20. The stock is scheduled to be listed on both BSE and NSE on July 21.

Eligible employees applying in the IPO are also being given a discount of Rs 54 per share.

Robust Pre-IPO Institutional Backing

SBI Funds Management saw good institutional interest prior to the opening of the public issue.

The company had received strong support from institutional investors ahead of the public issue, raising Rs 2,663 crore through its anchor book. It had allotted nearly 4.64 crore shares to 129 anchor investors at Rs 574 each, the upper limit of the IPO price band.

The anchors’ list features some of the top global names such as GIC, Abu Dhabi Investment Authority (ADIA), BlackRock, Fidelity, Goldman Sachs Asset Management, Capital World Investors and Norges Bank. On the domestic front, the anchors’ list comprises LIC, HDFC Mutual Fund, ICICI Prudential Mutual Fund, Nippon India Mutual Fund, HDFC Life Insurance, etc.

Moreover, the parent State Bank of India had already raised about Rs 1,655 crore through pre-IPO placement by selling a 1.42 per cent stake to 30 institutional investors. The shares were sold at Rs 574 in that transaction as well, indicating investor demand even before the IPO opened.

IPO Of Pure Offer For Sale

SBI Funds Management IPO is a full offer for sale (OFS), meaning the company will not get any proceeds from the issue.

The State Bank of India and its joint venture partner Amundi India Holdings are selling about a 10% stake in the firm together.

SBI is offloading around a 6.3 per cent stake and Amundi about 3.7 per cent. Post listing, SBI will go down to 55.46 per cent from 61.76 per cent, and Amundi will come down to 32.56 per cent.

The asset manager’s valuation at the top end of the price band is about ₹1.17 lakh crore.

India’s Largest Asset Manager

SBI Funds Management, the largest asset management company in India by quarterly average assets under management (QAAUM), was established in 1987.

The company had Rs 12.51 lakh crore of mutual fund assets under management at the end of March 31, 2026, a share of 15.3 per cent of the domestic mutual fund industry. At the end of FY26, its total QAAUM, including portfolio management services (PMS) and alternative investment fund (AIF) mandates, was Rs 29.46 lakh crore.

What The Brokerages Are Saying

Most brokerages following the stock remain optimistic about the long-term prospects.

Swastika Investmart has given a “Subscribe for Long Term” recommendation, citing market leadership of SBI Funds Management, a strong SIP franchise and a wide SBI distribution network. It added that the IPO is valued at around 38.1 times FY26 earnings, which is marginally below the average of listed players.

BP Equities has also maintained a “Subscribe” rating, pointing out that the company’s relatively lower profitability is more a function of its product mix than business quality. That increasing contribution from higher-margin active equity products and alternative investments could lead to earnings improvement over time, the broking said.

Aditya Birla Capital has also given a “Subscribe” rating on the basis of the company’s leadership position, good profitability, strong return ratios and the long-term growth potential of the growing mutual fund industry in India. It expects the company to benefit from sustained growth in systematic investment plans (SIPs) and rising financialisation of household savings.

The last-day subscriptions could be crucial for investors tracking the IPO, as institutional participation usually rises in the last hours and could alter the overall subscription scenario before the bidding closes at 5 p.m. on Thursday.

(Disclaimer: This article is for informational purposes only and should not be considered investment advice. The views, opinions, and recommendations expressed herein are those of the respective experts. Readers are advised to consult a qualified financial advisor before making any investment decisions.)

The post SBI Funds Management IPO GMP Jumps To Rs 92 On Final Day; Check Subscription, Price Band And Listing Outlook appeared first on NewsX.