SBI Funds Management IPO Day 3: Issue subscribed over 5 times; GMP points to 16% potential listing gains

The SBI Funds Management IPO has been witnessing strong investor demand on Thursday, its third and final day of bidding. The grey market remains upbeat, with the GMP at around 16%, indicating a potential listing price of nearly Rs 666 per share if current trends hold.

As of Day 3, the IPO has received subscriptions worth 5.21 times the total 12.45 crore shares offered. Retail investor participation has remained steady, with the category subscribed 2.38 times against the 5.42 crore shares reserved for retail buyers.

The company has fixed the IPO price band at Rs 545–574 per share. Investors can place bids for a minimum lot size of 26 shares, with further bids allowed in multiples of the same. At the upper price band, a retail investor would need to invest Rs 14,924 for one application.


The public issue is a complete Offer for Sale (OFS) involving 17.10 crore shares, with existing shareholders, State Bank of India and Amundi, selling a portion of their stakes. Since the IPO does not include any fresh issue of shares, SBI Funds Management will not receive any proceeds from the offering. The entire amount raised will go to the existing shareholders.

Brokerage firm Anand Rathi estimates that the IPO could raise around Rs 9,813 crore at the upper end of the price band, making it one of the biggest public offerings of 2026. However, as the issue is entirely an OFS, the company will not receive additional capital for business expansion or growth initiatives.

After the listing, the promoter and promoter group’s combined stake is expected to reduce from 98.2% to 89.8%, while public shareholding will rise to 10.2%. The increase in public float could improve stock liquidity and trading activity.

The IPO allotment basis is expected to be finalised on July 17, 2026, and the shares are likely to be listed on the BSE and NSE shortly thereafter.

SBI Funds Management IPO Subscription Status

As of Day 3 at 11:55 am, the SBI Funds Management IPO has received strong investor response, with the issue subscribed 5.21 times against the 12.45 crore shares available for subscription.

Retail Individual Investors (RIIs): The retail portion was subscribed 2.38 times, with bids received for 5.41 crore shares.

Non-Institutional Investors (NIIs): The NII category witnessed the highest demand, with the segment subscribed 14.43 times and bids placed for 2.31 crore shares.

Qualified Institutional Buyers (QIBs): The institutional portion was subscribed 2.88 times, with bids received for 3.09 crore shares reserved for QIBs.

SBI Funds Management IPO GMP

The Grey Market Premium (GMP) for the SBI Funds Management IPO is currently estimated at Rs 92 per share, reflecting a premium of nearly 16% over the upper price band of Rs 574. If the trend continues, the shares may list at around Rs 666, indicating potential listing gains for investors.

While GMP is an unofficial market indicator and can change before the listing, the current premium reflects positive investor sentiment toward the IPO of India’s largest mutual fund asset manager.

SBI Funds Management IPO subscription status

The SBI Funds IPO drew strong demand on Day 2, with the issue subscribed 2.77 times against the 12.45 crore shares on offer.

• Retail Individual Investors (RIIs): Subscribed 1.61 times, with bids for 5.41 crore shares.
• Non-Institutional Investors (NIIs): Led demand with 6.58 times subscription, receiving bids for 2.31 crore shares.
• Qualified Institutional Buyers (QIBs): Subscribed 1.50 times, with bids against the 3.09 crore shares reserved for the category.

Broker recommendations

ABM Equity Research recommends subscribing to the SBI Funds Management IPO, highlighting the company's strong backing from SBI and Amundi, market leadership, and scalable, asset-light business model.

The brokerage expects the mutual fund industry to deliver 16–17% AUM CAGR and 23–26% SIP CAGR over FY26–FY29, providing a strong runway for growth. SBIFM has demonstrated consistent execution, with revenue CAGR of 27.7% and PAT CAGR of 21.7% over FY24–FY26, alongside an estimated 43% ROE in FY26. At the upper price band of Rs 574, ABM believes the valuation is reasonable relative to listed peers, making the IPO an attractive play on India's long-term wealth creation opportunity.

India's largest asset manager

SBI Funds Management, the investment manager of SBI Mutual Fund, is India's largest asset management company by quarterly average assets under management (QAAUM). As of March 2026, it managed Rs 12.5 lakh crore of mutual fund QAAUM, accounting for a 15.3% market share.

Backed by State Bank of India and Amundi, the company combines SBI's vast distribution network with Amundi's global investment expertise. According to Nirmal Bang, it offers 128 schemes across equity, debt, hybrid, ETFs, index funds and overseas funds, besides PMS, AIFs, SIFs and advisory mandates.

The AMC also has one of the country's largest retail investor franchises. According to Anand Rathi, it served 17.95 million investors and managed 16.21 million live SIP accounts as of March 2026. Including PMS and advisory mandates, total QAAUM stood at Rs 29.46 lakh crore.

Strong distribution and SIP franchise

SBI Funds Management's biggest strength is its expansive distribution network. Nirmal Bang said the AMC works with over 1.32 lakh mutual fund distributors, covers 98.2% of India's PIN codes, and has one of the industry's strongest B-30 franchises.

Its digital platform has also scaled rapidly. During FY26, the AMC processed an average of 1.31 million monthly transactions, with 94.3% executed digitally. Its InvesTap app had 3.97 million registered users, 3.39 million active users and over 5.8 million downloads by the end of FY26.

SIPs remain a key growth driver. According to Anand Rathi, the AMC managed 16.2 million live SIP accounts, generated Rs 4,059 crore in monthly SIP inflows and oversaw Rs 1.73 lakh crore in SIP assets during FY26.

Financials and valuation

SBI Funds has delivered consistent growth over the past three years. Revenue from operations rose to Rs 4,389 crore in FY26 from Rs 3,598 crore in FY25 and Rs 2,691 crore in FY24. Consolidated PAT increased to Rs 3,067 crore from Rs 2,540 crore and Rs 2,073 crore, respectively.

Profitability has remained industry-leading, with the EBITDA margin improving to 79.1% in FY26 from 77.1% in FY25 and 73.7% in FY24. RoE stood at 51.4%.

At the upper end of the price band, the IPO is valued at 38.1x FY26 earnings and 33.6x EV/EBITDA. Nirmal Bang believes the valuation is attractive, noting that it is offered at a discount to listed peers ICICI Prudential AMC and HDFC AMC.

The IPO's book-running lead managers are Kotak Mahindra Capital, Axis Capital, BofA Securities India, HSBC Securities, ICICI Securities, Jefferies India, JM Financial, Motilal Oswal Investment Advisors and SBI Capital Markets. KFin Technologies is the registrar to the issue.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)