The SBI Funds Management IPO entered its final day of bidding with investor demand gathering pace and grey market sentiment remaining upbeat. The grey market premium (GMP) stands at around 16%, indicating a potential listing price of nearly Rs 666 per share, if current trends hold.

By the end of Day 2, the IPO was subscribed 2.77 times against the 12.45 crore shares on offer. The retail portion was subscribed 1.61 times, with bids for 5.42 crore shares reserved for the category.

The company has fixed the IPO price band at Rs 545-574 per share. Investors can bid for a minimum of 26 shares, requiring an investment of Rs 14,924 at the upper end of the price band.

The issue is a pure Offer for Sale (OFS) of 17.10 crore shares, with State Bank of India and Amundi selling part of their stakes. As there is no fresh issue, the company will not receive any proceeds.

According to Anand Rathi, the IPO is expected to raise around Rs 9,813 crore, making it one of the biggest public issues of 2026.

After the listing, promoter holding is expected to fall from 98.2% to 89.8%, while public shareholding will rise to 10.2%, boosting free float and liquidity.

The basis of allotment is likely on July 17, with the shares expected to list on the BSE and NSE soon after.

SBI Funds Management IPO GMP

The SBI Funds IPO is commanding a Grey Market Premium (GMP) of around Rs 92 per share, implying a 16% premium over the upper price band of Rs 574. If the trend sustains, the shares could list at around Rs 666, indicating healthy listing gains.

While the GMP is an unofficial indicator and can change before listing, the current premium reflects strong investor appetite for 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.

Nirmal Bang has assigned a "Subscribe" rating from a medium- to long-term perspective, citing SBI Funds Management's market leadership, extensive distribution network, strong profitability and favourable industry outlook.

Anand Rathi has also recommended "Subscribe". While it believes the IPO is fully priced, the brokerage said the company's leadership position, asset-light business model, SBI-Amundi parentage and large retail investor base justify the valuation.

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.

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.