SBI Funds Management IPO Allotment LIVE: Will the stock see massive listing pop on July 21? GMP at 16% – What’s next

Before the shares are listed on the stock exchanges, some investors track the Grey Market Premium, commonly known as GMP. This refers to the unofficial premium at which IPO shares are traded in the grey market before listing.

For the SBI Funds Management IPO, the GMP has been reported around Rs 92 per share ahead of listing. Based on these levels, the stock could list at a premium of around 16% over the upper issue price if the sentiment remains unchanged.

However, investors should remember that the grey market is unofficial and unregulated. GMP can change every day and does not guarantee the actual listing price, which depends on investor demand, market conditions and overall sentiment.

SBI Funds Management is launching its IPO through the book-building process. Unlike many recent public issues, this IPO does not include any fresh issue of shares. Instead, it is entirely an Offer for Sale (OFS), where existing shareholders are selling part of their stake to public investors.

Following the completion of the IPO, the company’s shares will be listed on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). The issue size, after accounting for the pre-IPO share sale, stands at around Rs 9,812.91 crore, making it one of the largest public offerings in the mutual fund industry.

The SBI Funds Management IPO has been subscribed over 41 times. This is one of the 10 most subscribed mainboard IPO.

One of the company’s key strengths is its large presence in the Indian mutual fund industry. Managing a sizeable asset base allows it to spread operating costs across a larger business, which can support profitability as assets grow over time.

Another important factor is its distribution network. Through State Bank of India’s banking network and other distribution channels, the company has access to a large number of potential investors across urban as well as smaller cities. It also benefits from Amundi’s global asset management experience.

The company has also invested in digital platforms that support online transactions, investor servicing and distributor operations.

The 16% GMP indicates that the issue may list at a 16% premium. However, the actual listing price could differ a lot from this. As the GMP is an unofficial metric of investor sentiment. This is a broad measure of overall sentiment. There are many instance when a stock lists at a significantly higher/lower rate compared to the GMP.

SBI Funds Management has reported growth in its revenue and profit over the last three financial years. Revenue from operations increased from Rs 2,161.59 crore in FY23 to Rs 2,690.56 crore in FY24 and further to Rs 3,597.76 crore in FY25, according to the offer documents.

The company’s EBITDA also improved during the same period. It rose from Rs 1,810.41 crore in FY23 to Rs 2,718.82 crore in FY24 and reached Rs 3,412.94 crore in FY25. The increase reflects higher income generated from managing a larger pool of assets.

Profit after tax followed a similar trend, increasing from Rs 1,339.71 crore in FY23 to Rs 2,072.79 crore in FY24 and Rs 2,540.15 crore in FY25.

SBI Funds Management is one of the largest asset management companies in India in terms of quarterly average assets under management (QAAUM). According to the offer documents and industry data, the company manages a significant share of the country’s mutual fund assets, giving it a strong position in the industry.

The company serves more than 16 million investors across the country through a wide distribution network. It reaches customers through bank branches, distributors, financial advisers and digital platforms, allowing investors from different regions to access its investment products.

A large investor base and a diversified product portfolio help the company generate fee income from different asset classes. However, like other asset management companies, its earnings remain linked to market performance and investor participation.

The equity shares of SBI Funds Management will be listed on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). Once listed, investors can buy and sell the shares just like any other listed company through their trading accounts.

Trading will begin after the exchanges complete their standard pre-open session. During this period, buy and sell orders are matched to determine the opening price of the stock before normal market trading starts.

After the allotment process is completed, the next step is the refund and share credit process. Investors who do not receive shares will have the application amount released or refunded according to the tentative schedule announced in the prospectus.

For successful applicants, the allotted shares will be credited to their demat accounts before the listing date. Investors should verify that the shares have been credited by checking their demat account or through their broker.

According to the tentative timeline, refunds and demat credits are expected on July 20. The shares are then scheduled to begin trading on the NSE and BSE on July 21.

The basis of allotment is finalised. Investors can check whether they have received shares through the registrar’s website or on the BSE and NSE portals. The allotment status usually becomes available a few hours after the registrar completes the process.

To check the status, investors need to select the IPO name and enter details such as their PAN, application number or DP Client ID. Once the required information is submitted, the website will display whether shares have been allotted.

Investors are advised to keep their application details handy while checking the status. They should also ensure that the information entered matches the details used while submitting the IPO application to avoid errors.

The company’s operations are primarily focused on asset management. According to its filings, it does not have separate reportable business segments, with most of its revenue coming from investment management activities.

SBI Funds Management’s financials have shown steady growth in recent years. Total income increased from Rs 3,426 crore in FY24 to Rs 4,976 crore in FY26, while profit after tax rose from Rs 2,073 crore to Rs 3,067 crore during the same period.

The company’s FY26 net profit was around 21% higher than the previous year, reflecting growth in both assets under management and fee income.

Besides managing investments, SBI Funds Management has built digital platforms for investors, distributors and sales teams to make transactions and customer services easier. It also has an international presence through subsidiaries that offer offshore investment products.

The SBI Funds Management IPO is entirely an Offer for Sale (OFS) of up to 20.37 crore equity shares. Of these, State Bank of India (SBI) is selling up to 12.83 crore shares, while Amundi India Holding is offloading up to 7.54 crore shares. As the issue does not include a fresh issue of shares, SBI Funds Management will not receive any funds from the IPO.

SBI Funds Management is India’s largest asset management company by quarterly average assets under management (QAAUM), managing Rs 12.51 lakh crore as of March 31, 2026. The company has a diversified range of mutual fund and investment products, a large investor base, and an extensive distribution network supported by SBI’s branch network. It also benefits from Amundi’s global investment expertise and technology capabilities.

The company mainly earns management fees for managing investors’ money across its mutual fund schemes and other investment products. The mutual fund business contributes the largest share of its revenue.

The SBI Funds Management IPO ended the three-day bidding process with an overall subscription of 41.73 times. The QIB portion led the demand with a subscription of 140.11 times, while the NII category was booked 22.51 times. The retail investor segment received bids for 3.76 times the shares reserved for the category.

The company’s earnings are largely driven by the size of assets it manages. Growth in systematic investment plans (SIPs), increasing participation in equity mutual funds and rising financial savings can support higher assets under management over time. Since revenue is largely earned as a percentage of assets managed, any increase or decline in AUM has a direct impact on the company’s income.

As of March 31, 2026, SBI Funds Management managed Rs 12.51 lakh crore in quarterly average assets under management (QAAUM), giving it a 15.3% share of the mutual fund industry. Apart from mutual funds, the company also manages portfolio management services (PMS), passive investment products and specialised investment funds, adding multiple revenue streams to its business.

The company reported an EBITDA of Rs 4,058 crore in FY26, translating into an EBITDA margin of around 82%. Since asset management is a fee-based business, operating costs are relatively lower compared to many other industries.

This has enabled the company to maintain high operating margins while continuing to grow its business.

SBI Funds Management’s financials have shown steady growth in recent years. Total income increased from Rs 3,426 crore in FY24 to Rs 4,976 crore in FY26, while profit after tax rose from Rs 2,073 crore to Rs 3,067 crore during the same period.

The company’s FY26 net profit was around 21% higher than the previous year, reflecting growth in both assets under management and fee income.

“At the upper price band of INR 574, SBIFML is valued at approximately 38x FY26 earnings, implying a discount to HDFC AMC, ICICI Prudential AMC, and Nippon India AMC, while trading at a premium to UTI AMC and Aditya Birla Sun Life AMC. The discount reflects its lower revenue yield of approximately 35 bps of AUM versus approximately 44 bps to 52 bps for HDFC AMC and ICICI Prudential AMC, driven by a higher mix of passive products and institutional PMS mandates. We believe the valuation appropriately captures the current business mix while offering meaningful upside as the equity mix improves,” said Deven Choksey Research in its IPO note.

“At the upper band of INR 574, the issue is valued at a P/E of 38.1x on FY26 EPS of INR 15.06 (P/B of 19.6x), broadly in line with or at a discount to larger listed peers, supported by its dominant franchise and superior return ratios.” said Arihant Capital in its IPO note.

The company’s promoters are State Bank of India (SBI), Amundi India Holding, and Amundi Asset Management. State Bank of India, incorporated under the State Bank of India Act, 1955, is India’s largest public sector bank and a leading banking and financial services institution. Amundi India Holding is a France-based investment holding company engaged in investment, research, and securities management activities. Amundi Asset Management, also headquartered in France, is one of Europe’s leading asset managers and provides global investment management services. Together, SBI and Amundi jointly promote SBI Funds Management through their long-standing partnership.

India’s mutual fund industry has grown rapidly, driven by the financialization of household savings, rising retail participation, increasing SIP adoption, and a growing preference for professionally managed investment products. Industry QAAUM expanded at a CAGR of around 20.5% between March 2021 and March 2026, reaching ₹81.5 trillion. Retail and HNI investors accounted for 60.1% of industry AUM in March 2026, up from 53.9% in March 2021, highlighting a structural shift in savings behaviour. Monthly SIP inflows remained strong at ₹3.5 trillion in FY26, reflecting growing investor confidence in mutual funds as a long-term wealth creation tool. Looking ahead, industry QAAUM is projected to reach ₹147–155 trillion by FY30, growing at a CAGR of 16–18%, supported by sustained investor participation and favourable market conditions.

SBI Funds Management is the biggest asset management company (AMC) in India based on quarterly average assets under management (QAAUM). As of March 31, 2026, it managed mutual fund assets worth Rs 12.51 lakh crore, giving it a 15.3% market share. The company has also maintained its position as the country’s largest AMC for several years.

Apart from mutual funds, SBI Funds Management has a strong presence in portfolio management services, specialised investment funds, and passive investment products. Its wide distribution network comes from State Bank of India (SBI), while Amundi brings global investment experience. This combination has helped the company expand its reach and operate efficiently across different investment segments.

As India’s largest asset management company by mutual fund assets under management, SBI Funds Management benefits from strong operating leverage, a 15.3% market share by QAAUM, industry-leading cost efficiency, extensive research capabilities, and a predominantly active asset mix. Backed by favourable industry trends, diversified revenue streams, and a long operating track record, the company is well positioned for sustained growth.

It is also India’s largest portfolio management services (PMS) provider by PMS and advisory assets under management and one of the country’s leading Specialized Investment Fund (SIF) platforms. With a 39.7% market share in the PMS segment, a strong institutional client base, and expanding Alternative Investment Fund (AIF) and SIF businesses, the company generates stable, recurring income while strengthening its presence beyond traditional mutual funds.

The IPO is entirely an Offer for Sale (OFS) of up to 170.96 million equity shares, aggregating to Rs 9,795.4 crore. Since the issue comprises only an OFS, the company will not receive any proceeds from the offering. The primary objective is to list its equity shares on the stock exchanges and gain the benefits of a public listing.

SBI Funds Management Ltd (SBIFML), established in 1992, is India’s largest asset management company by mutual fund assets under management. A joint venture between State Bank of India and Amundi Asset Management, it manages SBI Mutual Fund and offers a wide range of investment products, including equity, debt, hybrid, ETF and portfolio management services (PMS). As of FY26, the company oversees around Rs 12.5 lakh crore in assets, representing nearly 15% of India’s mutual fund industry. It serves more than 18 million investors through 128 mutual fund schemes spanning equity, debt, arbitrage, index, ETF, overseas, liquid and overnight fund categories.

In the unlisted markets, the shares of SBI Funds Management were trading at a premium of RS 97, translating into an estimated listing price of Rs 671. This marks potential gains of 16.9% per share.

However, it is important to note that GMP is an unofficial indicator of the listing price and may fluctuate based on market mood and sentiment.

After the allotment process is completed, successful applicants will receive the shares in their demat accounts ahead of listing.

SBI Funds Management is tentatively scheduled to make its stock market debut on the National Stock Exchange (NSE) and the BSE on Tuesday, July 21, 2026.

The listing price will depend on market conditions and investor demand on the day of debut.

Also read: SBI Funds Management IPO Vs ICICI Prudential AMC: 5 factors to watch as India’s largest asset manager heads to the stock market