The ₹9,813 crore IPO of SBI Funds Management, India’s largest asset management company (AMC), opened for subscription on July 14. Investors can apply for the IPO until July 16.
Before the IPO opened, the company raised around ₹1,655 crore from 30 investors through a pre-IPO placement. Because of this, the IPO size was reduced from ₹11,693 crore to ₹9,813 crore.
IPO Is Fully an Offer for Sale
This IPO is completely an Offer for Sale (OFS) by State Bank of India (SBI) and Amundi India Holdings.
This means the money raised from the IPO will go to the existing shareholders selling their stake. SBI Funds Management itself will not receive any funds from the issue.
Brokerages Recommend ‘Subscribe’
Several brokerage firms have given a positive view on the IPO.
Anand Rathi has given a ‘Subscribe’ rating. The brokerage said SBI Funds Management is the largest AMC in India with a 15.3% share of the mutual fund industry’s quarterly average assets under management (QAAUM) as of March 2026.
It also praised the company’s asset-light business model and its presence in mutual funds, PMS, AIFs, SIFs and advisory services.
Swastika InvestSmart has also recommended subscribing to the IPO. It highlighted the company’s strong financial performance, including a 43.02% Return on Net Worth (RoNW) and an 81.56% EBITDA margin.
Arihant Capital has given a ‘Subscribe for Long Term’ rating. The brokerage believes the IPO is fairly valued and backed by a strong brand, healthy profits and solid return ratios.
Price Band and Minimum Investment
The IPO price band has been fixed at ₹545 to ₹574 per share.
Investors need to apply for a minimum of 26 shares, which requires an investment of ₹14,924 at the highest price band.
Latest GMP
According to InvestorGain, the Grey Market Premium (GMP) of the IPO is currently around ₹100.
If the GMP remains the same until listing, the shares could list at about ₹100 above the issue price.
However, investors should remember that GMP changes frequently and is not a guaranteed indicator of listing performance.
