SBI Funds Management IPO Books 68% on Day Two as Anchor Backing Supports Valuation
India’s largest asset manager saw steady retail and non-institutional demand on the second day of its 9,795-crore rupee offer for sale, testing investor appetite for fully priced financial listings.
SBI Funds Management’s initial public offering reached 68 per cent subscription on its second day, driven by early retail and non-institutional investor interest. The 9,795-crore rupee offer for sale opened on 14 July and closes on 16 July, priced between 545 and 574 rupees per share.
Institutional confidence was established before the public window, with the company securing 2,663 crore rupees from 129 anchor investors at the upper price band. The anchor book featured global heavyweights such as BlackRock, GIC and the Abu Dhabi Investment Authority, alongside domestic giants including LIC and HDFC Mutual Fund.
Despite the strong anchor foundation, the qualified institutional buyer portion remained muted at 8 per cent subscription. Conversely, the non-institutional investor segment was booked 1.39 times, while retail and employee portions tracked at 62 per cent and 1.02 times respectively.
The transaction is structured entirely as an offer for sale, meaning no fresh capital will enter the company’s balance sheet. State Bank of India will reduce its stake from 61.76 per cent to 55.46 per cent, while French partner Amundi will divest 3.7 per cent, lowering its holding to 32.56 per cent.
At the upper price band, the asset manager commands an implied valuation of approximately 1.2 lakh crore rupees. Brokerages note the issue is priced at 38.1 times FY26 earnings, representing a discount to listed peers like HDFC AMC and ICICI Prudential AMC, though some analysts caution the valuation is fully priced.
SBI Funds Management remains India’s largest asset management company by quarterly average assets under management. As of March 2026, it held a 15.3 per cent market share with 12.51 lakh crore rupees in mutual fund assets, underpinned by a 43.02 per cent return on net worth.
Grey market premiums currently indicate an estimated listing price of 662 rupees per share, a 15.33 per cent premium to the upper band. However, market observers note this premium reflects a pessimistic trend, having fluctuated between 75 and 140 rupees over the past ten trading sessions.
Analysts highlight that future earnings growth will depend heavily on sustained assets under management expansion and broader market performance. The company plans to list on the BSE and NSE on 21 July, following allotment finalisation on 17 July.
