SBI Funds Management IPO GMP surges to 16% ahead of market debut
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SBI Funds Management's initial public offering (IPO) is set to make its stock market debut next week with the grey market premium (GMP) indicating a healthy listing gain after the issue attracted overwhelming investor demand.
The latest grey market premium stood at ₹92 per share as of July 18, implying an estimated listing price of around ₹666 against the issue price of ₹574. This suggests a potential listing gain of 16.03%, although grey market trends are unofficial and should not be considered a guarantee of listing performance.
The ₹9,813-crore IPO, which was open for subscription between July 14 and July 16, was subscribed 41.66 times, driven by massive institutional participation. According to exchange data, the issue received bids for 518.93 crore equity shares worth nearly ₹2.98 lakh crore against 12.45 crore shares on offer, attracting 63.76 lakh applications across investor categories.
With bids worth nearly ₹2.98 lakh crore, the issue has emerged as India's fifth-largest IPO by bid value, behind only Reliance Power, LG Electronics India, Bajaj Housing Finance and rival asset manager ICICI Prudential AMC.
The qualified institutional buyer (QIB) portion led the subscription, closing 140.11 times subscribed. The non-institutional investor (NII) category was subscribed 22.51 times, while the retail individual investor (RII) segment 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 gathered remarkable momentum on the final day. The QIB portion, which was subscribed just 0.08 times on the opening day and 1.50 times on Day 2, eventually closed at 140.11 times. The NII category rose from 1.40 times on Day 1 to 22.51 times, while retail subscription improved steadily from 0.67 times to 3.59 times by the close.
Ahead of the public issue, SBI Funds Management had raised ₹2,663 crore from 129 anchor investors by allotting 4.64 crore equity shares at ₹574 apiece, the upper end of the price band. The anchor book was reportedly oversubscribed more than 20 times, reflecting strong demand from global sovereign wealth funds, asset managers and domestic institutional investors.
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 shares, representing a 6.3% stake, while Amundi India Holding is selling 7.56 crore shares, equivalent to a 3.7% stake. At the upper end of the price band, the company is valued at around ₹1.17 lakh crore, making it one of the largest IPOs of 2026.
Before the anchor placement, the company had 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.