SBI Funds Management Limited’s IPO Subscribed 68 Percent on Day 1 of IPO
Non-institutional investors (NII) portion subscribed 1.39 times on Day 1
Issue closes on Thursday, July 16, 2026, for bidding
Mumbai, July 14, 2026: The Initial Public Offering of SBI Funds Management Limited was subscribed 0.68 times on the first day of bidding, demonstrating strong demand from retail, employees and non-institutional investors (NII) for this IPO.
The issue received bids of 8,50,65,656 equity shares against the offered 12,45,63,536 equity shares, according to data available on the stock exchanges.
The Non-Institutional Portion and Retail Portion were subscribed 1.39 times and 0.62 times, respectively. The Qualified Institutional Investors (QIB) portion was subscribed 0.08 times, while the Employee Reserved Quota was subscribed 1.02 times.
The issue kicked off for subscription on Tuesday, July 14, 2026, and will close for subscription on Thursday, July 16, 2026.
A day before the opening of the issue, SBI Funds Management Limited had raised nearly ₹2,663 crore from anchor investors. SBI FM’s anchor book attracted participation from 129 marquee investors across geographies and investor categories, reflecting broad-based confidence in the business model, long-term growth strategy, and India’s expanding asset management opportunity.
Earlier, SBI Funds Management had also completed its pre-IPO (Initial Public Offering) placement of around Rs 1880 crore.
Brokerage houses recommend SBI Funds Management Limited
Leading brokerage firms like Anand Rathi, Arihant Capital, Chola Securities, Kantilal Chhaganlal Securities, SMIFS Limited and Ventura Securities have given their “Subscribe” recommendation to SBI Funds Management.
Leading brokerage firms like Anand Rathi, Arihant Capital, Chola Securities, Kantilal Chhaganlal Securities, SMIFS Limited and Ventura Securities have given their “Subscribe” recommendation to SBI Funds Management.
Anand Rathi highlights the company operates an asset-light, fee-based business model through the management of mutual funds, Portfolio Management Services (PMS), Alternative Investment Funds (AIFs), Specialized Investment Funds (SIFs) and advisory mandates across equity, debt, hybrid, passive and overseas investment products.
On the valuation front, at the upper price band, the company is valued at a P/E of 38.1 times. It recommends a “Subscribe” rating to the IPO.
Chola Securities highlights the company benefits from the strong SBI franchise, which provides a significant competitive advantage through access to SBI's extensive branch network, large customer base, and strong brand credibility, supporting customer acquisition and asset mobilization, particularly in Beyond Top 30 (B-30) cities.
On the valuation front, it is fairly valued at 38 times FY26 earnings, compared with listed peers such as HDFC AMC (41 times), ICICI Prudential AMC (48 times), and Nippon Life India AMC (51 times), considering its AUM growth prospects and revenue yield profile relative to peers. It has a “SUBSCRIBE” rating.
IPO Details
The IPO comprises an Offer for Sale (OFS) of up to 170,956,631 equity shares of face value Re. 1 each, aggregating up to Rs 9,795.32 crore at the upper end of the price band (offer size has been calculated after considering the Rs 54 per equity share discount available to eligible employees).
The details of the Offer for Sale and the post Offer market capitalization of the Company, each at the Floor Price and the Cap Price, are given below:
Particulars | At Floor Price of Rs 545 per equity share | Up to Amount (Rs in million) | At Cap Price of Rs 574 per equity share | Up to Amount (Rs in million) |
Up to No. of Equity Shares of face value of Re 1 each | Up to No. of Equity Shares of face value of Re 1 each | |||
Offer for Sale | 170,956,631 | 92,995.47* | 170,956,631 | 97,953.21* |
* Offer size has been calculated considering the discount of Rs 54 to eligible employees at floor price and cap price.
Investors can bid for a minimum of 26 Equity Shares and in multiples of 26 Equity Shares thereafter.
Kotak Mahindra Capital Company Limited, Axis Capital Limited, BofA Securities India Limited, HSBC Securities and Capital Markets (India) Private Limited, ICICI Securities Limited, Jefferies India Private Limited, JM Financial Limited, Motilal Oswal Investment Advisors Limited, and SBI Capital Markets Limited* are the book-running lead managers, and KFin Technologies Limited is the registrar of the Offer.
About the Company
Originally incorporated in 1992 as a private limited and converted into a public limited company pursuant to an intimation, the company is the largest asset management company (“AMC”) in India by quarterly average mutual fund assets under management (“QAAUM”), with QAAUM of ₹12,509.98 billion and a mutual fund market share of 15.3% as of March 31, 2026, a position that it has consistently held since March 2021 (Source: CRISIL Report, paragraph 1, page 209). Including its Portfolio Management Services (“PMS”) and other advisory mandates (collectively with PMS, “Alternates”), its total QAAUM was ₹29,461.05 billion as at March 31, 2026.
The company is India’s oldest AMC, acting as the investment manager to SBI Mutual Fund, which commenced operations in June 1987 as the first mutual fund entity outside the Unit Trust of India (Source: CRISIL Report, paragraph 1, page 216).
The table below shows subscription data for all the categories of investors:
SBI Funds Management Limited Last updated on 14 Jul 2026 | 05:00:00 PM | ||||||
Sr.No. | Category | No.of shares offered/reserved | No. of shares bid for | No. of times of total meant for the category | ||
1 | Qualified Institutional Buyers (QIBs) | 3,09,28,731 | 23,22,788 | 0.08 | ||
1(a) | Foreign Institutional Investors (FIIs) | - | 74,464 | - | ||
1(b) | Domestic Financial Institutions(Banks/ Financial Institutions(FIs)/ Insurance Companies) | - | 1,482 | - | ||
1(c) | Mutual Funds | - | 1,144 | - | ||
1(D) | Others | - | 22,45,698 | - | ||
2 | Non Institutional Investors(NIIS) | 2,31,96,549 | 3,22,85,006 | 1.39 | ||
2.1 | Non Institutional Investors(Bid amount of more than Ten Lakh Rupees) | 1,54,64,366 | 2,10,74,378 | 1.36 | ||
2.1(a) | Corporates | - | 5,99,014 | - | ||
2.1(b) | Individuals (Other than RIIs) | - | 1,95,45,266 | - | ||
2.1(c) | Others | - | 9,30,098 | - | ||
2.2 | Non Institutional Investors(Bid amount of more than Two Lakh Rupees and upto 10 lakh rupees) | 77,32,183 | 1,12,10,628 | 1.45 | ||
2.2(a) | Corporates | - | 77,194 | - | ||
2.2(b) | Individuals (Other than RIIs) | - | 1,08,81,910 | - | ||
2.2(c) | Others | - | 2,51,524 | - | ||
3 | Retail Individual Investors (RIIs) | 5,41,25,280 | 3,35,94,964 | 0.62 | ||
3(a) | Cut Off | - | 2,93,68,716 | - | ||
3(b) | Price Bids | - | 42,26,248 | - | ||
4 | Employee Reserved | 32,57,347 | 33,33,850 | 1.02 | ||
4(a) | Employee (Cut off) | - | 28,10,808 | - | ||
4(b) | Employee (Price) | - | 5,23,042 | - | ||
5 | Reservation PortionShareholder | 1,30,55,629 | 1,35,29,048 | 1.04 | ||
5(a) | RPS (Cut off) | - | 1,10,79,198 | - | ||
5(b) | RPS (Price) | - | 24,49,850 | - | ||
Total | 12,45,63,536 | 8,50,65,656 | 0.68 | |||
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