SBI Funds Management IPO fully subscribed on Day 2 amid strong retail and NII interest

SBI Funds Management’s ₹1.03-billion IPO was fully subscribed on the second day of bidding, reflecting strong investor confidence in India’s fast-growing asset management industry. | Photo Credit: FRANCIS MASCARENHAS

SBI Funds Management's $1.03 billion initial public offering (IPO) was fully subscribed on the second day ​of bidding on Wednesday, as investors bet on the growth prospects ‌of India's asset management industry.

The IPO of India's ​largest asset manager received bids for 126.74 million ⁠shares, against 124.56 million on offer, as of 10:48 a.m., exchange data showed. The asset manager had sold shares worth $278.5 million to ‌the so-called anchor investors, including BlackRock, the sovereign wealth funds of Singapore, Abu Dhabi and Norway, ahead of ‌the public launch of the IPO.

SBI Funds Management, a ‌joint ⁠venture between the country's largest lender State Bank ⁠of India (SBI), and Europe's largest asset manager Amundi, had assets under management worth ₹12.5 lakh crore ($131.1 billion), as of end-March 2026. The IPO comes after a subdued ​first half of the ‌year for primary market fundraising in India as Iran war-driven spike in crude oil prices raised growth concerns in Asia's third-largest economy.

Non-institutional investors bid for 51.79 million shares, 2.23 times ‌the number on offer, while retail investors bid ​for 47.18 million shares, 87% of the shares set aside for them.

The portion of shares reserved ⁠for SBI shareholders was subscribed 1.6 times. Qualified institutional buyers, who typically turn active on the final day of bidding, subscribed ‌to 8% of the shares.

The IPO will close for subscription on July 16, and the asset manager's shares are expected to begin trading on July 21.

India's equity market has seen a sharp increase in investor numbers, with mutual funds also recording steady inflows, boosting the prospects for the SBI ‌Funds Management IPO. Indian equity mutual funds have recorded 64 consecutive ​months of inflows through June 2026, with a consistent rise in systematic investment plan (SIP) inflows, the preferred route for ⁠retail investors.

However, SBI Funds Management faces stiff competition from peers ICICI ⁠Prudential Asset Management, HDFC Asset Management, Nippon Life India Asset Management , and others in a crowded asset ‌management industry in India.

SBI Funds Management's IPO is valued at 38.12 times its fiscal year 2026 earnings per share, ​below the industry average of 41.64 times.

Published on July 15, 2026