SBI Funds Management IPO to list today; GMP signals 17% premium debut

SBI Funds Management is all set to make its stock market debut on Tuesday, July 21, after its Rs 9,795.31-crore IPO drew overwhelming investor interest. The shares will list on both the BSE and NSE, with the grey market indicating a strong start for the country's largest asset manager.

Ahead of the listing, SBI Funds Management shares are commanding a Grey Market Premium (GMP) of around Rs 97. Based on the upper end of the IPO price band at Rs 574, the GMP points to an estimated listing price of nearly Rs 671, implying a potential 17% listing gain for investors.

While GMP provides an indication of market sentiment, it remains unofficial and unregulated. Actual listing performance may differ depending on broader market conditions and investor demand.

IPO sees robust investor response

The IPO, which was open for subscription from July 14 to July 16, was subscribed 41.66 times overall, reflecting strong demand across investor categories.

Institutional investors drove the response, with the Qualified Institutional Buyers (QIB) portion subscribed an impressive 140.11 times. The Non-Institutional Investor (NII) segment was booked 22.51 times, while the Retail Individual Investor (RII) category received subscriptions of 3.60 times.

The issue was priced in the range of Rs 545-574 per share.

Entire issue was an OFS

The IPO was structured entirely as an Offer for Sale (OFS) of 17.10 crore shares by existing shareholders State Bank of India (SBI) and Amundi. Since there was no fresh issue of shares, the company will not receive any proceeds from the offering, with the entire amount going to the selling shareholders.

Following the listing, the combined promoter and promoter group stake is expected to decline from 98.2% to 89.8%, while public shareholding will rise to 10.2%, potentially improving liquidity in the stock.

India's largest AMC by QAAUM

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, the company managed mutual fund QAAUM of Rs 12.5 lakh crore, accounting for a 15.3% market share. Backed by State Bank of India and global asset manager Amundi, the company leverages SBI's extensive banking and distribution network alongside Amundi's global investment expertise.

According to Nirmal Bang, the AMC offers 128 investment schemes across equity, debt, hybrid, ETFs, index funds and overseas funds. It also provides Portfolio Management Services (PMS), Alternative Investment Funds (AIFs), Specialised Investment Funds (SIFs) and advisory mandates.

Strong retail franchise and digital edge

SBI Funds Management has built one of India's largest investor bases. According to Anand Rathi, the AMC served 17.95 million individual investors and managed 16.21 million live SIP accounts as of March 2026. Including PMS and advisory mandates, its total QAAUM stood at Rs 29.46 lakh crore.

Its distribution network spans more than 1.32 lakh mutual fund distributors, covering 98.2% of India's PIN codes, giving it a deep presence across urban as well as smaller markets.

The company has also expanded its digital footprint. During FY26, it processed an average of 1.31 million transactions every month, with 94.3% of all transactions conducted digitally. Its InvesTap platform had 3.97 million registered users, 3.39 million active users and over 5.8 million downloads by the end of the financial year.

SIPs remain a major growth engine, with the AMC managing 16.2 million live SIP accounts, monthly SIP inflows of Rs 4,059 crore, and SIP assets worth Rs 1.73 lakh crore in FY26.

Financial performance remains strong

The company has delivered consistent growth over the past three financial years.

Revenue from operations increased to Rs 4,389 crore in FY26, up from 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, compared with Rs 2,540 crore in FY25 and Rs 2,073 crore in FY24.

Profitability also remained among the best in the industry. EBITDA margin improved to 79.1% in FY26 from 77.1% a year earlier and 73.7% in FY24, while return on equity (RoE) stood at a robust 51.4%, underscoring the company's strong earnings profile.

The IPO was managed by Kotak Mahindra Capital, Axis Capital, BofA Securities India, HSBC Securities, ICICI Securities, Jefferies India, JM Financial, Motilal Oswal Investment Advisors and SBI Capital Markets, while KFin Technologies served as the registrar to the issue.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)