SBI Funds Management IPO garners 42x bids; QIB portion booked 140x on final day

The ₹9,813-crore initial public offering (IPO) of SBI Funds Management, India's largest asset management company, was subscribed 41.66 times on the final day of bidding, driven by overwhelming demand from qualified institutional buyers (QIBs).

According to exchange data, the IPO received bids for 518.93 crore equity shares worth ₹2.98 lakh crore against 12.45 crore shares on offer, attracting 63.76 lakh applications across investor categories.

The QIB portion emerged as the biggest driver of demand, garnering 140.11 times subscription. The non-institutional investor (NII) category was subscribed 22.51 times, while the retail individual investor (RII) portion was booked 3.59 times. The employee quota received 4.65 times subscription, while the shareholder reservation portion was subscribed 9.52 times.

Institutional demand accelerated sharply on the final day. The QIB book, which was subscribed just 0.08 times on Day 1 and 1.50 times on Day 2, closed at 140.11 times. The NII category also witnessed strong momentum, with subscription rising from 1.40 times on the opening day to 22.51 times by the close of bidding. Retail subscription improved steadily from 0.67 times on Day 1 to 3.59 times on the final day.

Ahead of the IPO opening, the asset management arm of SBI Mutual Fund had raised ₹2,663 crore from anchor investors. The company allotted 4.64 crore equity shares to 129 anchor investors at ₹574 per share, the upper end of the price band. The anchor book was reportedly oversubscribed by more than 20 times, reflecting strong institutional appetite.

The SBI Funds Management IPO is entirely an offer for sale (OFS) by existing shareholders. At the upper end of the price band of ₹545-574 per share, the issue values the asset management company at around ₹1.17 lakh crore, making it one of the largest IPOs in India this year.

The IPO comprises an offer for sale by existing shareholders State Bank of India (SBI) and Amundi India Holding. As part of the transaction, SBI is divesting up to 12.83 crore equity shares, representing a 6.3% stake, while Amundi India Holding is selling up to 7.56 crore shares, equivalent to a 3.7% stake. Together, the two promoters, which currently own nearly 98% of SBI Funds Management, are offloading around 10% of the company.

The anchor investor list included several marquee global institutions such as GIC, Abu Dhabi Investment Authority (ADIA), Government of Singapore, Monetary Authority of Singapore, Capital World Investors, BlackRock, Fidelity Management & Research, Goldman Sachs Asset Management, and Norges Bank.

Last week, the company also raised ₹1,654.99 crore through a pre-IPO placement, attracting investors such as 3P India Equity Fund 1, Tata AIG General Insurance Company, Dymon Asia Multi-Strategy Investment (Singapore) Pte. Ltd., and Bennett Coleman & Co. Ltd.

The basis of allotment is expected to be finalised on July 17, while SBI Funds Management shares are scheduled to list on the NSE and BSE on July 21, 2026.

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