The SBI Funds Management IPO entered its second day of bidding with solid investor interest, while sentiment in the grey market remains upbeat. The Grey Market Premium (GMP) is currently hovering around 15–16%, suggesting a potential listing price of nearly Rs 662 per share, if current trends hold.

On the first day of bidding, the IPO was 68% subscribed, with investors bidding for 68% of the 12.45 crore shares on offer. Retail participation has been encouraging, with the retail quota subscribed 62% against the 5.42 crore shares reserved for the segment.

The public issue will remain open for subscription until July 16. The company has fixed the price band at Rs 545–574 per share. Investors can bid for a minimum of 26 shares and in multiples thereafter.

At the upper price band of Rs 574, a single retail application requires an investment of Rs 14,924.

The IPO is a pure Offer for Sale (OFS) comprising 17.10 crore shares, with existing shareholders State Bank of India and Amundi offloading their stakes. As there is no fresh issue of shares, SBI Funds Management will not receive any proceeds from the offering. The entire IPO proceeds will go to the selling shareholders.

According to Anand Rathi, the issue size at the upper end of the price band is estimated at Rs 9,813 crore, making it one of the largest IPOs of the year. Since the issue is entirely an OFS, there will be no fresh capital infusion into the company.

Post listing, the combined stake of the promoter and promoter group is expected to decline to 89.8% from the current 98.2%, while public shareholding will rise to 10.2%, improving the stock's free float and liquidity.

The basis of allotment is likely to be finalised on July 17, 2026, with the shares expected to debut on both the BSE and the NSE shortly thereafter.

SBI Funds Management IPO GMP Live: SBI Funds issue set to enter day 2 of bidding with 68 overall subscription. Should you subscribe?

SBI Funds Management IPO GMP

The Grey Market Premium (GMP) for the SBI Funds Management IPO is currently hovering around Rs 88 per share, or nearly 15% above the upper price band of Rs 574. If this trend continues, the stock could debut at around Rs 662, pointing to a healthy listing gain for investors.

While the GMP is an unofficial indicator and can change significantly before listing, the current premium reflects strong market optimism towards the IPO of the country's largest mutual fund asset manager.

SBI Funds Management IPO Subscription Status

The SBI Funds Management IPO received a solid response on the first day of bidding, with the issue 68% subscribed against the 12.45 crore shares on offer.

Retail Individual Investors (RIIs): The retail portion was subscribed 62%, with bids received for 5.41 crore shares reserved for the category.

Non-Institutional Investors (NIIs): The NII segment was subscribed 1.39 times, attracting bids for the 2.31 crore shares on offer.

Qualified Institutional Buyers (QIBs): The QIB portion was subscribed 8%, with bids received against the 2.31 crore shares reserved for institutional investors.

Nirmal Bang has given a "Subscribe" rating to the IPO from a medium- to long-term perspective. It said SBI MF’s market leadership, distribution strength, healthy profitability and favourable industry outlook support the issue.

Anand Rathi has also recommended "Subscribe". The brokerage said the IPO is fully priced, but SBI Funds Management’s leadership, asset-light model, SBI-Amundi parentage and retail investor base support the offer.

SBI Funds Management: India's largest asset manager

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

Backed by State Bank of India (SBI) and global asset management giant Amundi, the company combines SBI's extensive banking and distribution network with Amundi's international investment expertise. According to Nirmal Bang, SBI Mutual Fund offers 128 schemes spanning equity, debt, hybrid, ETFs, index funds and overseas funds, besides portfolio management services (PMS), alternative investment funds (AIFs), specialised investment funds (SIFs) and advisory mandates.

The company also boasts a massive retail investor base. Anand Rathi noted that, as of March 2026, SBI Funds Management served 17.95 million individual investors and managed 16.21 million live SIP accounts. Including PMS and advisory mandates, its total QAAUM stood at Rs 29.46 lakh crore.

Strong distribution network and SIP franchise

A key competitive advantage for SBI Funds Management is its unmatched distribution reach. According to Nirmal Bang, the AMC has an omnichannel network of more than 1.32 lakh mutual fund distributors, covering 98.2% of India's PIN codes and maintaining one of the industry's strongest B-30 (beyond the top 30 cities) franchises.

The company has also built a robust digital ecosystem. During FY26, SBI Mutual Fund processed an average of 1.31 million transactions every month, with nearly 94.3% of all transactions executed digitally. Its InvesTap app had 3.97 million registered users, 3.39 million active users, and more than 5.8 million downloads by the end of FY26.

SIPs continue to be a major growth driver. According to Anand Rathi, SBI Funds Management had 16.2 million live SIP accounts, generated monthly SIP inflows of Rs 4,059 crore, and managed SIP assets of Rs 1.73 lakh crore during FY26.

SBI Funds Management has delivered consistent financial growth over the past three years. Revenue from operations increased to Rs 4,389 crore in FY26, compared with Rs 3,598 crore in FY25 and Rs 2,691 crore in FY24. Consolidated profit after tax (PAT) rose to Rs 3,067 crore in FY26 from Rs 2,540 crore a year earlier and Rs 2,073 crore in FY24.

The company has also maintained industry-leading profitability. Its EBITDA margin improved to 79.1% in FY26, up from 77.1% in FY25 and 73.7% in FY24, while return on equity (RoE) stood at an impressive 51.4%.

At the upper end of the IPO price band, SBI Funds Management is valued at 38.1 times FY26 earnings and 33.6 times EV/EBITDA. Nirmal Bang believes the valuation is attractive, noting that the IPO is being offered at a discount to listed peers ICICI Prudential AMC and HDFC AMC on these metrics.

Despite its market leadership, SBI Funds Management faces several risks. Since its revenue is linked to assets under management, earnings remain sensitive to market movements. A prolonged correction in equity or debt markets, weaker fund performance, or elevated investor redemptions could weigh on revenue and profitability.

The company also operates in an increasingly competitive industry. Nirmal Bang highlighted growing competition from established AMCs, exchange-traded funds (ETFs), ULIPs, direct equity investing and emerging digital investment platforms. Over time, pricing pressure and higher distributor commissions could also impact margins.