Led by strong demand from non-institutional investors (NIIs), the mega initial public offering (IPO) of SBI Funds Management was subscribed 2.77 times at the end of the second day of bidding on Wednesday. The NII portion was subscribed 6.58 times, while the retail investor segment was booked 1.61 times.
The strong demand for SBI Funds’ IPO comes as its unlisted shares continue to remain in high demand in the unofficial grey market despite weakness in the broader equity market amid worsening geopolitical cues.
According to market platform IPOwatch, unlisted shares of SBI Funds Management are commanding a grey market premium (GMP) of Rs 90 per share, indicating a potential listing gain of 16% over the upper end of the price band. The portion for Qualified Institutional Buyers (QIBs) was subscribed by 1.50 times while employee reserved quota was booked by 2.27 times.
The country’s largest asset manager aims to raise Rs 9,795 crore through the IPO, which opened on Tuesday and will close on Thursday. The issue size was earlier planned at Rs 11,693 crore, but was reduced after SBI last week raised Rs 1,655 crore from a group of investors.
SBI Funds has fixed the IPO price band at Rs 545–Rs 574 per equity share. The public issue is entirely an Offer for Sale (OFS) of 20.37 crore equity shares.
Backed by its joint promoters, State Bank of India (SBI) and Amundi Asset Management, the company benefits from SBI's extensive domestic distribution network and Amundi's global asset management expertise, said Anand Rathi Research Team in a note.
“At the upper price band, the company is valuing at P/E at 38.1x and EV/EBITDA of 33.6x with to its FY26 earnings and market cap of Rs 116,913.9 crore post issue of equity shares. We believe that the IPO is fully priced and recommend a “Subscribe” rating to the IPO,” said Anand Rathi.
Analysts at Ventura said that SBI Funds benefits from a strong SIP franchise, with 16.21 million live SIPs, monthly SIP inflows of around Rs 4,060 crore and SIP assets under management of nearly Rs 1.73 lakh crore as of March 31, 2026. They stated that the partnership with Amundi strengthens SBI AMC’s investment, technology and international capabilities.