SBI Funds Management IPO booked 0.68x on Day 1; NII portion fully booked, QIBs stay on sidelines
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The ₹9,813-crore initial public offering (IPO) of SBI Funds Management, India's largest asset management company, was subscribed 0.68 times on the first day of bidding on Tuesday. The issue of the asset management arm of SBI Mutual Fund garnered strong demand from non-institutional investors (NIIs), offsetting a muted response from qualified institutional buyers (QIBs).
According to BSE data available at 5:00 p.m., the SBI Funds Management IPO received bids for 8.50 crore equity shares worth ₹5,020 crore against 12.45 crore shares on offer. The issue attracted 9,70,405 applications on the first day of bidding.
The data showed that the NII portion was fully subscribed at 1.39 times, led by strong participation from high-net-worth individuals (HNIs). Within the category, the segment for applications above ₹10 lakh was subscribed 1.36 times, while the ₹2 lakh-10 lakh category was booked 1.45 times.
The shareholder reservation portion was subscribed 1.04 times, while the employee quota received bids for 1.02 times the shares reserved.
On the other hand, the retail individual investor (RII) portion was subscribed 0.62 times, while the QIB category saw a muted response, with subscriptions of just 0.08 times. Notably, bids from QIBs typically accelerate on the final day of the issue, as institutional investors generally wait until then to place their orders.
SBI Funds Management IPO GMP up 16%
Following the first day of subscription, shares of SBI Funds Management continued to command a healthy grey market premium (GMP) in the unlisted market. The GMP stood at around ₹91 per share, indicating a potential listing price of ₹665, or a premium of nearly 16% over the issue price. However, the GMP should be viewed only as an informal indicator and not as a reliable predictor of listing performance.
Ahead of the IPO opening, SBI Funds Management had raised ₹2,663 crore from anchor investors on July 13, with the anchor book reportedly oversubscribed by more than 20 times. 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 investor roster included marquee global names 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. Domestic investors included LIC, HDFC Mutual Fund, ICICI Prudential Mutual Fund, Nippon India Mutual Fund, Axis Mutual Fund, and HDFC Life Insurance.
Last week, the asset manager also raised ₹1,654.99 crore through a pre-IPO placement from investors including 3P India Equity Fund 1, Tata AIG General Insurance Company, Dymon Asia Multi-Strategy Investment (Singapore) Pte. Ltd., and Bennett Coleman & Co. Ltd.
The IPO is entirely an offer for sale (OFS) by existing shareholders State Bank of India (SBI) and Amundi India Holding. SBI is divesting up to 12.83 crore equity shares, representing a 6.3% stake, while Amundi is selling up to 7.56 crore shares, equivalent to a 3.7% stake. Together, the promoters are offloading around 10% of the company.
At the upper end of the price band of ₹545-574 per share, the IPO values SBI Funds Management at around ₹1.17 lakh crore, making it one of the largest public offerings of the year.
The IPO will remain open for subscription until July 16. The basis of allotment is expected to be finalised on July 17, while SBI Funds Management shares are scheduled to list on the BSE and NSE on July 21, 2026.
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