SBI Funds leads busy Indian IPO week on strong grey market premiums
A wave of six Indian initial public offerings, headlined by the Rs 9,795 crore SBI Funds Management issue, is drawing heavy pre-listing demand, signalling sustained appetite for new equity.
India's primary market is set for a busy stretch as six initial public offerings prepare to launch or finalise allocations, with grey market premiums indicating robust investor demand across both mainboard and small-cap segments. The largest offering, the Rs 9,795 crore SBI Funds Management IPO, opens for subscription on July 14 and closes on July 16, 2026.
SBI Funds is currently commanding a grey market premium of Rs 91 to Rs 92, representing a 16% premium over its upper price band of Rs 574. This points to an estimated listing price of around Rs 665, suggesting investors are positioning for a strong debut from the state-backed asset manager.
The most aggressive pre-listing pricing is concentrated in the small and medium enterprise segment. Millworks Technologies, a Rs 160.34 crore BSE SME offering also opening on July 14, leads the pack with a grey market premium of Rs 395. This represents a 120% premium over its issue price of Rs 331, implying an expected listing price of roughly Rs 726. Fellow SME issuer Devson Catalyst is seeing a similar trend, with a Rs 45 premium indicating a 38% upside over its upper price band of Rs 118.
Mainboard activity extends beyond the asset manager. Kusumgar finalised its Rs 650 crore allotment on July 13 and is trading at a Rs 160 premium, suggesting a 39% pop to an estimated Rs 579 upon listing. Meanwhile, Laser Power & Infra closed its final bidding day on July 13 with a more modest 15% premium, indicating an expected listing price of Rs 246. Alpine Texworld, opening its Rs 126.25 crore issue alongside SBI Funds, shows a marginal 2% premium.
For market participants, the widespread grey market premiums underscore the current liquidity and risk appetite in the Indian equity market. However, unregulated grey market activity does not guarantee actual listing performance. Final returns will ultimately depend on actual subscription demand and broader market conditions when these shares begin trading.
