SBI Funds Management IPO Day 1: Issue booked 61% so far. GMP hints 17% listing pop. Apply or not?

SBI Funds Management's ₹9,795-crore IPO opened for subscription on 14 July and will close on 16 July. The company has fixed the price band at ₹545-574 per equity share, with investors required to bid in multiples of 26 shares.

Ahead of the public issue, SBI Funds Management raised ₹2,663 crore from anchor investors, drawing strong participation from both global and domestic institutional investors.

The company allotted 4,63,93,095 equity shares to 129 anchor investors at ₹574 per share, the upper end of the price band, according to a stock exchange filing issued on Monday.

The anchor book included marquee global investors such as GIC, Abu Dhabi Investment Authority (ADIA), Capital World Investors, BlackRock, Fidelity Management & Research, Goldman Sachs Asset Management, and Norges Bank. Leading domestic institutions including Life Insurance Corporation of India (LIC), HDFC Mutual Fund, ICICI Prudential Mutual Fund, Nippon India Mutual Fund, and HDFC Life Insurance also participated in the anchor allocation.

SBI Funds Management IPO has reserved not more than 50% of the shares in the public issue for qualified institutional buyers (QIB), not less than 15% for non-institutional Institutional Investors (NII), and not less than 35% of the offer is reserved for retail investors. A discount of ₹54 per equity share is being offered to the eligible employees.

Tentatively, SBI Funds Management IPO basis of allotment of shares will be finalised on Friday, 17 July and the company will initiate refunds on Monday, 20 July, while the shares will be credited to the demat account of allottees on the same day following refund. SBI Funds Management share price is likely to be listed on BSE and NSE on Tuesday, 21 July.

Established in 1987, SBI Funds Management is India's largest asset management company (AMC) by quarterly average assets under management (QAAUM). As of March 31, 2026, it managed mutual fund QAAUM of ₹12.51 lakh crore, commanding a 15.3% market share.

Including its portfolio management services (PMS) and alternative investment fund (AIF) mandates, the company's total QAAUM stood at ₹29.46 lakh crore at the end of FY26.

SBI Funds Management IPO GMP today

SBI Funds Management IPO GMP today is +100. Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of the SBI Funds Management share was ₹674 apiece, which is 17.42% higher than the IPO price of ₹574.

According to grey market trends observed over the last nine sessions, the current GMP of ₹100 suggests a pessimistic perspective. Throughout this timeframe, the GMP fluctuated between ₹75.00 and ₹140, according to analysts.

SBI Funds Management IPO review

Swastika Investmart has recommended "Subscribe for Long Term", citing SBI Mutual Fund's leadership position as India's largest asset management company with ₹12.5 lakh crore in QAAUM, a strong SIP franchise, and the extensive SBI-Amundi distribution network. The brokerage noted that the IPO is valued at 38.1x FY26 EPS, below the industry average of 41.6x, offering reasonable valuations. It also highlighted the company's robust profitability, with a 43.02% return on net worth (RoNW) and an 81.56% EBITDA margin, reflecting its asset-light business model. However, it noted that the issue is a 100% offer-for-sale (OFS) with no fresh capital infusion, making future earnings dependent on AUM growth and market performance.

Nirmal Bang Securities has assigned a "Subscribe" rating from a medium- to long-term perspective. The brokerage said SBI Mutual Fund is attractively valued compared with listed peers and highlighted its ₹12.5 lakh crore QAAUM, 15.3% market share, diversified product portfolio, and strong retail and institutional franchise. It noted that active mutual fund QAAUM grew at a 22% CAGR during FY24-FY26, while the company maintained a 20% cost-to-income ratio, 79% EBITDA margin, and a 51% return on equity (ROE)—well ahead of peers such as HDFC AMC and Nippon Life AMC. At 33.6x EV/EBITDA and 38.1x P/E, the IPO is available at a discount to HDFC AMC and ICICI Prudential AMC, it added.

Anand Rathi has recommended "Subscribe", stating that at the upper price band, the IPO is valued at 38.1x FY26 earnings and 33.6x EV/EBITDA, with a post-issue market capitalisation of about ₹1.17 lakh crore. While the brokerage believes the issue is fully priced, it considers the company's strong business fundamentals sufficient to support a subscription recommendation.

Arihant Capital Markets has given a "Subscribe for Long Term" rating. The brokerage said structural drivers such as rising financialisation, increasing SIP penetration, and SBI's extensive distribution network are expected to support steady AUM growth and annuity-like fee income. It cautioned that earnings remain exposed to market volatility and regulatory changes related to total expense ratios (TER) and distribution. At the upper end of the price band, the IPO is valued at 38.1x FY26 EPS and 19.6x price-to-book, which Arihant believes is in line with or at a discount to larger listed peers, supported by the company's dominant market position and superior return ratios.

SBI Funds Management IPO details

The public offering consists entirely of an OFS of up to 17.09 crore equity shares by current shareholders, State Bank of India (SBI), and Amundi, totalling up to ₹9,795 crore at the maximum price.

SBI plans to sell a 6.3% stake, while Amundi intends to divest 3.7%.

After the listing, SBI's ownership will decrease from 61.76% to 55.46%, and Amundi's share will drop to 32.56%.

Originally, the issue size was set at ₹11,693 crore, but was later reduced after the company raised approximately ₹1,880 crore through a pre-IPO placement.

At the high end of the price range, SBI Funds Management is valued at roughly ₹1.2 lakh crore.

The IPO is being managed by a consortium of book-running lead managers, including Kotak Mahindra Capital Company, Axis Capital, BofA Securities India, HSBC Securities and Capital Markets (India), ICICI Securities, Jefferies India, JM Financial, Motilal Oswal Investment Advisors, and SBI Capital Markets.

SBI Funds Management IPO subscription status

Subscription for the public issue will open at 10:00 IST on Tuesday's deals.

Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.