Summary of this article
SBI Funds Management listed at Rs 613.30, up 6.85 per cent on NSE
The listing fell short of grey market expectations despite strong IPO demand
The Rs 9,813 crore IPO was subscribed 41.73 times overall
SBI Funds Management made a positive stock market debut on July 21, although the listing was weaker than what the grey market had been signalling in the run-up to the issue. Shares of the country's largest asset manager opened at Rs 613.30 on the National Stock Exchange (NSE), a gain of 6.85 per cent over the IPO price of Rs 574. On the BSE, the stock listed at Rs 610, up 6.27 per cent from its issue price.
The listing was lower than grey market expectations. Ahead of the debut, the last available grey market premium (GMP) of Rs 94 had suggested that the stock could list around Rs 668, implying a gain of about 16.38 per cent. Instead, the shares debuted nearly Rs 55 below that level, suggesting investors turned more cautious at the time of listing despite the strong response received during the IPO.
The stock listed under the NSE symbol SBIFUNDS and BSE scrip code 544829, with ISIN INE640G01020. At the listing price, SBI Funds Management's market capitalisation stood nearly at Rs 1.25 lakh crore. This was higher than its implied valuation of about Rs 1.17 lakh crore at the IPO price of Rs 574 per share.
SBI Funds Management IPO Details
The SBI Funds Management IPO was available for subscription between July 14 and July 16. Shares were offered in a price band of Rs 545 to Rs 574, with the final issue price fixed at the upper end of the band. Retail investors had to apply for a minimum lot of 26 shares, requiring an investment of Rs 14,924.
The basis of allotment was finalised on July 17, refunds were initiated on July 20, and shares were credited to investors' demat accounts on the same day.
The IPO was managed by a consortium of nine book-running lead managers, including Kotak Mahindra Capital Company, Axis Capital, BofA Securities India, HSBC Securities and Capital Markets (India), ICICI Securities, Jefferies India, JM Financial, Motilal Oswal Investment Advisors and SBI Capital Markets. KFin Technologies was the registrar to the issue.
How Much Profit Selling Shareholders Made
The Rs 9,812.91 crore IPO was entirely an offer for sale (OFS), which means SBI Funds Management will not receive any money from the issue. The entire proceeds will go to the two promoters, State Bank of India (SBI) and Amundi India Holding, which diluted part of their stake through the public offering.
SBI sold 128.33 million shares in the IPO. Based on its weighted average acquisition cost of Rs 0.15 per share, the bank made a gain of about Rs 573.85 on each share sold. This translates into an estimated gain of around Rs 7,363 crore before taxes and other transaction-related expenses. Amundi India Holding sold 75.37 million shares. Having acquired these shares at a weighted average cost of Rs 4.35 apiece, it earned an estimated Rs 569.65 per share, resulting in gains of about Rs 4,293 crore before taxes and expenses.
Together, the two promoter shareholders are estimated to have realised gains of around Rs 11,656 crore from the OFS. Since only part of their holdings was sold, the combined promoter stake in SBI Funds Management declined to 88 per cent after the IPO from 96.38 per cent before the issue.
How Much Profit Retail Investors Made
Retail investors who were allotted one lot of 26 shares invested Rs 14,924 in the IPO. At the NSE listing price of Rs 613.30, the value of those shares rose to about Rs 15,946, giving them a listing gain of around Rs 1,022, or 6.85 per cent.
Employees made higher listing gains as they were offered shares at a discount of Rs 54 each. Their effective purchase price was Rs 520 per share. At the NSE listing price, they earned Rs 93.30 per share, or about Rs 2,426 on one lot of 26 shares, translating into a return of nearly 18 per cent. The company had reserved 3.26 million shares for eligible employees.
SBI Funds Management IPO Subscription Details
Overall, the SBI Funds Management IPO was subscribed 41.73 times. The biggest demand came from qualified institutional buyers (QIBs), whose portion was subscribed 140.11 times. The non-institutional investor (NII) category was subscribed 22.51 times, while the retail investors' portion was booked 3.76 times. The employee quota received 4.65 times subscription, and the shareholder reservation was subscribed 9.52 times.
Overall, investors placed bids for nearly 5,198.60 million shares against the 124.56 million shares available under the net issue.
SBI Funds Management IPO Anchor List
Ahead of the IPO, SBI Funds Management raised Rs 2,662.96 crore from anchor investors by allotting 46.39 million shares at Rs 574 each. Domestic mutual funds accounted for 37.2 per cent of the anchor book through 70 schemes managed by 23 fund houses.
Among the anchor investors, Life Insurance Corporation of India and Capital Group Global Equity Fund (Canada) received the largest allocations, investing about Rs 180 crore each, or 6.76 per cent of the anchor book. The Government of Singapore invested around Rs 152.38 crore, accounting for 5.72 per cent of the allocation. Other key investors included Nomura India Investment Fund Mother Fund, BlackRock Global Funds – India Fund, Abu Dhabi Investment Authority, Government Pension Fund Global, HCL Capital Private and Goldman Sachs India Equity Portfolio.
About SBI Funds Management
Founded in 1992, SBI Funds Management is India's largest asset management company in terms of assets under management (AUM). It manages SBI Mutual Fund, a joint venture between the SBI and France-based Amundi, Europe's largest asset manager. As of December 31, 2025, the company managed assets worth around Rs 16.32 lakh crore, giving it a market share of about 15.50 per cent in India's mutual fund industry. It serves more than 16 million investors and offers a wide range of investment products, including equity, debt and hybrid mutual funds, exchange-traded funds (ETFs), index funds, portfolio management services (PMS), and overseas investment mandates.
SBI Funds Management Financial Performance
The company's revenue rose from Rs 3,426.08 crore in FY24 to Rs 4,236.15 crore in FY25 and further to Rs 4,976.11 crore in FY26. Ebitda increased from Rs 2,718.82 crore to Rs 3,412.94 crore and then to Rs 4,058.44 crore during the same period.
Profit after tax climbed from Rs 2,072.79 crore in FY24 to Rs 2,540.15 crore in FY25 before reaching Rs 3,067.38 crore in FY26, representing year-on-year growth of around 21 per cent in the latest financial year.
The Ebitda margin stood above 81 per cent in all three years, while the PAT margin remained above 60 per cent, as of the last reported period.
As of March 31, 2026, the company reported total assets of Rs 6,420.45 crore, net worth of Rs 5,963.06 crore, reserves and surplus of Rs 326.73 crore and a return on net worth of 43.02 per cent.
