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 opening day of bidding on Tuesday. While the issue received strong participation from non-institutional investors (NIIs), demand from qualified institutional buyers (QIBs) remained subdued on the first day.
According to BSE data available at 5 p.m., the IPO received bids for 8.50 crore equity shares worth about ₹5,020 crore against the 12.45 crore shares on offer. A total of 9,70,405 applications were received during the day's bidding.
The NII category witnessed robust demand and was fully subscribed 1.39 times, driven largely by high-net-worth individuals (HNIs). Within the segment, the portion reserved for applications exceeding ₹10 lakh was subscribed 1.36 times, while the ₹2 lakh-₹10 lakh category attracted subscriptions of 1.45 times.
The shareholder reservation category was subscribed 1.04 times, while the employee quota also saw healthy participation, with subscriptions reaching 1.02 times the shares reserved.
In contrast, the retail individual investor (RII) segment was subscribed 0.62 times, while the QIB portion received bids for only 0.08 times the shares on offer. Market participants noted that institutional investors typically place the bulk of their bids on the final day of the issue.
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In the unofficial market, SBI Funds Management continued to command a healthy grey market premium (GMP) following the first day of bidding. The GMP was quoted at around ₹91 per share, suggesting a possible listing price of nearly ₹665, or about 16 per cent above the upper end of the issue price. However, market experts caution that the grey market premium is only an informal indicator and should not be treated as a reliable measure of listing performance.
Ahead of the IPO launch, the company had raised ₹2,663 crore from anchor investors on July 13. The anchor book was reportedly oversubscribed by more than 20 times, with 4.64 crore equity shares allotted to 129 anchor investors at ₹574 per share, the upper end of the price band.
The anchor investor list featured several prominent global institutions, including GIC, Abu Dhabi Investment Authority (ADIA), the Government of Singapore, the Monetary Authority of Singapore, Capital World Investors, BlackRock, Fidelity Management & Research, Goldman Sachs Asset Management and Norges Bank. Domestic participants included LIC, HDFC Mutual Fund, ICICI Prudential Mutual Fund, Nippon India Mutual Fund, Axis Mutual Fund and HDFC Life Insurance.
Prior to the anchor allocation, the asset manager had also raised ₹1,654.99 crore through a pre-IPO placement from investors such as 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 consists entirely of an offer for sale (OFS) by existing shareholders State Bank of India (SBI) and Amundi India Holding. Under the offer, SBI is selling up to 12.83 crore equity shares, representing a 6.3 per cent stake, while Amundi is divesting up to 7.56 crore shares, equivalent to a 3.7 per cent stake. Together, the two promoters are offloading nearly 10 per cent of the company.
At the upper end of the price band of ₹545-574 per share, SBI Funds Management is valued at approximately ₹1.17 lakh crore, making it one of the country's biggest IPOs this year. The public issue will remain open for subscription until July 16. The basis of allotment is expected to be finalised on July 17, while the company's shares are scheduled to debut on the BSE and NSE on July 21, 2026.
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