Mumbai: SBI Funds Management’s much-awaited Rs 9,795 crore initial public offering (IPO) opened for public subscription on July 14 and received a steady response from investors on the first day. As of 3:45 pm, the public issue had been subscribed 59%, with retail investors accounting for a significant portion of the demand.

The IPO, which will remain open until July 16, is entirely an offer for sale (OFS) by existing shareholders State Bank of India (SBI) and French asset manager Amundi. Since the company will not issue any fresh shares, the proceeds from the issue will go to the selling shareholders rather than the company.

The IPO is one of the largest public offerings in India’s financial services sector this year and has attracted considerable attention from institutional and retail investors alike.

Price band and issue details

The company has fixed the price band at Rs 545-574 per equity share.

Investors can bid for a minimum of 26 equity shares and thereafter in multiples of 26 shares.

The IPO comprises up to 17.09 crore equity shares, aggregating Rs 9,795 crore at the upper end of the price band.

The issue size was originally planned at Rs 11,693 crore but was later reduced after the company completed a pre-IPO placement of around Rs 1,880 crore.

At the upper price band, SBI Funds Management is valued at approximately Rs 1.2 lakh crore.

Subscription status on Day 1

The IPO received healthy participation across investor categories during the first day.

As of 3:45 pm, the subscription stood at 59% overall.

The category-wise subscription was:

  • Qualified Institutional Buyers (QIBs): 0.07 times
  • Non-Institutional Investors (NIIs): 1.16 times
  • Retail Individual Investors (RIIs): 0.57 times
  • Employee Reservation: 0.94 times

The NII category was fully subscribed on the first day, while retail investors showed moderate participation. Institutional investors are expected to place larger bids closer to the issue’s closing date.

Strong anchor investor participation

Ahead of the IPO opening, SBI Funds Management raised Rs 2,663 crore from anchor investors.

The anchor book witnessed participation from several leading global and domestic institutional investors, including:

  • GIC
  • Abu Dhabi Investment Authority (ADIA)
  • Capital World Investors
  • BlackRock
  • Fidelity Management & Research
  • Goldman Sachs Asset Management
  • Norges Bank
  • Life Insurance Corporation of India (LIC)
  • HDFC Mutual Fund
  • ICICI Prudential Mutual Fund
  • Nippon India Mutual Fund
  • HDFC Life Insurance

Domestic mutual funds accounted for approximately 37% of the anchor allocation, with 23 mutual funds investing through 70 different schemes.

Among the largest allocations, HDFC Mutual Fund and ICICI Prudential Mutual Fund each received shares worth Rs 200 crore, while Capital World Investors, GIC and LIC were allotted shares worth Rs 180 crore each.

Promoters to dilute stake

As part of the offer for sale:

  • State Bank of India will sell a 6.3% stake
  • Amundi will divest 3.7%

Following the IPO, SBI’s shareholding will decline from 61.76% to 55.46%, while Amundi’s stake will reduce to 32.56%.

Despite the stake sale, SBI will continue to remain the majority shareholder in the country’s largest asset management company.

Grey market premium indicates positive listing expectations

According to market observers, the IPO is commanding a healthy premium in the unofficial grey market.

As of 3:30 pm on July 14, the grey market premium (GMP) stood at around Rs 88 per share.

Based on the upper price band of Rs 574, the estimated listing price works out to approximately Rs 662, implying a potential listing gain of around 15.33%.

However, investors should note that grey market premiums are unofficial, speculative and do not guarantee listing performance.

About SBI Funds Management

Established in 1987, SBI Funds Management is India’s largest asset management company based on Quarterly Average Assets Under Management (QAAUM).

As of March 31, 2026, the company managed:

  • Mutual Fund QAAUM: Rs 12.51 lakh crore
  • Market share: 15.3%
  • Total QAAUM (including PMS and AIF mandates): Rs 29.46 lakh crore

Its wide distribution network, strong SBI brand recall and leadership position in India’s rapidly growing mutual fund industry have made it one of the country’s most recognised asset management companies.

Should you apply?

SBI Funds Management enters the market as the country’s largest mutual fund house with a dominant market position, strong brand backing from SBI, a diversified product portfolio and consistent growth in assets under management.

The strong anchor investor response and healthy grey market premium indicate positive investor sentiment. However, since the IPO is entirely an offer for sale, the company will not receive fresh capital for business expansion.

Long-term investors looking for exposure to India’s expanding mutual fund industry may find the company attractive due to its market leadership and established franchise. Short-term investors, meanwhile, will closely monitor subscription trends over the next two days and overall market conditions ahead of listing.