The window to invest in one of this year’s biggest public issues is about to close.
The SBI Funds Management IPO has entered its final day of bidding, giving investors one last opportunity to decide whether they want a stake in India’s largest asset management company. Over the past two days, the issue has attracted strong demand across investor categories.
But should investors simply follow the subscription numbers? Or does the company offer a stronger long-term investment case beyond the expected listing gains
Let’s take a look at where the IPO stands and what analysts are recommending.
SBI Funds IPO Subscription numbers surging by the minute
The Rs 9,795-crore initial public offering (IPO) opened for subscription on July 14 and will close today, July 16. The current subscription rate on Day 3 is rising by the minute. You can track the latest development here.
By the end of Day 2, the IPO had already been subscribed 2.77 times. The strongest demand came from non-institutional investors, while retail participation also crossed full subscription.
Furthermore, Qualified Institutional Buyers (QIBs) has also started picking up pace.
The issue is priced in the range of Rs 545-574 per share, with investors required to apply for a minimum of 26 shares.
Ahead of the IPO opening, SBI Funds Management raised Rs 2,663 crore from anchor investors. The company allotted nearly 4.64 crore shares to 129 institutional investors at the upper price band of Rs 574.
SBI Funds IPO GMP – What does it indicate?
The grey market premium (GMP) has remained firm on the final day of bidding.
Based on the current GMP of around Rs 97, the estimated listing price works out to nearly Rs 671 per share. This translated to a premium of about 17% over the upper end of the IPO price band.
However, it is important to understand that GMP reflects unofficial market sentiment and may change before listing.
SBI Funds IPO: What’s the analyst take?
Most brokerages continue to recommend subscribing to the issue, although the reasons extend beyond possible listing gains.
According to Deven Choksey Research, the IPO is priced at around 38 times FY26 estimated earnings, which is lower than some of the larger listed asset management companies while trading at a premium to smaller peers.
The brokerage said, “We believe the valuation appropriately captures the current business mix while offering meaningful upside as the equity mix improves. Accordingly, we recommend investors ‘Subscribe’ to the issue.”
Geojit Investments has also taken a positive view on the IPO.
The brokerage noted, “At the upper price band of Rs 574, SBI Mutual Fund is valued at a P/E of 38x, moderately lower compared to peers.”
It further added, “Considering its robust fundamentals, industry leadership, and favorable long-term outlook, we recommend subscribing from a medium- to long-term investment perspective.”
A similar view was shared by Arihant Capital.
The brokerage said, “At the upper band of Rs 574, the issue is valued at a P/E of 38.1x on FY26 EPS of Rs 15.06 (P/B of 19.6x), broadly in line with or at a discount to larger listed peers.”
It added, “We recommend a ‘subscribe for long term’ rating.”
What should investors keep in mind?
The broad consensus among brokerages is that SBI Funds Management offers exposure to India’s growing mutual fund industry through the country’s largest asset manager.
However, like any IPO, listing performance will depend on market conditions and investor demand at the time of debut.
With bidding closing today, investors now have one final opportunity to decide whether the country’s largest mutual fund house deserves a place in their portfolio.
Disclaimer: Investment in initial public offerings (IPOs) involves a high degree of market risk, and the subscription data or grey market premiums (GMP) mentioned reflect unofficial indicators that are subject to volatility before listing. The brokerage opinions quoted represent independent research assessments and do not constitute an offer, solicitation, or recommendation by this publication to buy, sell, or hold any security. Investors should carefully evaluate the Red Herring Prospectus (RHP), including all underlying risks such as sector concentration, regulatory fee changes, and asset under management fluctuations, and consult a SEBI-registered investment advisor before making financial decisions. This disclaimer has been generated using AI to support user well-being and responsible content consumption.