SBI Funds IPO fully booked, GMP surges to over 16%
What's the story
SBI Funds Management's ₹11,693 crore initial public offering (IPO) has been fully subscribed on the second day of bidding. The response from investors highlights their confidence in India's rapidly growing asset management sector. Around 11:00am, the IPO had received bids for 126.74 million shares against an offer of 124.56 million shares, according to exchange data. The price band is set at ₹545-574 per share.
Investor backing
IPO follows strong demand from anchor investors
Ahead of the public launch of its IPO, SBI Funds Management had sold shares worth $278.5 million to a host of anchor investors.
These included global investment giant BlackRock and sovereign wealth funds from Singapore, Abu Dhabi, and Norway.
The company is a joint venture between India's largest lender State Bank of India (SBI) and Europe's largest asset manager Amundi.
Asset details
Non-institutional and retail investor segments saw robust demand
As of March 2026, SBI Funds Management had assets under management worth ₹12.5 lakh crore.
The IPO comes after a lackluster first half of the year for primary market fundraising in India due to growth concerns stemming from US-Iran war-induced crude oil price surge.
Non-institutional investors have subscribed to 51.79 million shares, 2.23 times the number on offer while retail investors have subscribed to 47.18 million shares or 87% of their portion of shares offered in the IPO.
Subscription breakdown
Shares reserved for SBI shareholders subscribed 1.6 times
The portion of shares reserved for SBI shareholders was subscribed 1.6 times while qualified institutional buyers, who usually become active on the last day of bidding, have 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.
At the time of writing, the gray market premium for the IPO stood at 16.38%, indicating a potential listing price of ₹₹668.