The subscription is over. The allotment process has been completed. Now, all eyes are on the next big event – the stock market debut of SBI Funds Management IPO.

The country’s largest asset management company (AMC) is scheduled to make its stock market debut on the National Stock Exchange (NSE) and the BSE on July 21. For investors who received an allotment, the biggest question now is simple – Will the stock list at a healthy premium?

While no one can predict the exact listing price. However, investors are tracking two key indicators – the Grey Market Premium (GMP) and the overall demand the IPO received during the subscription period.

Let’s take a look – 

SBI Funds Management IPO: What is the grey market indicating?

Ahead of listing, in the unofficial market, SBI Funds Management shares are commanding a Grey Market Premium (GMP) of around Rs 93 per share.

Based on the IPO issue price of Rs 574 per share, the current GMP suggests a possible listing price of nearly Rs 667. This indicates a premium of about 16.2%.

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However, investors should remember that the grey market is unofficial and unregulated. GMP changes frequently depending on market sentiment and demand and should not be considered a guaranteed indicator of the listing price.

SBI Funds Management IPO: Final subscription numbers

The level of subscription is another factor that investors usually track before listing.

SBI Funds Management IPO received a strong demand across investor categories. The issue was subscribed 41.73 times on the final day of bidding.

The Qualified Institutional Buyers (QIB) category saw the strongest response. It received a subscription of 140.11 times. The Non-Institutional Investor (NII) portion was subscribed 22.51 times, Meanwhile, the retail investor category was booked 3.76 times.

Although strong subscription indicates investor interest, it does not necessarily guarantee listing gains, as market conditions on the listing day also play an important role.

A quick recap of the SBI Funds Management IPO

SBI Funds Management opened its public issue between July 14 and July 16, while the basis of allotment was finalised on July 17.

The Rs 9,812.91 crore IPO was entirely an Offer for Sale (OFS). This means no fresh shares were issued and the company will not receive any proceeds from the issue. Existing shareholders are selling 17.10 crore equity shares through the offering.

The final issue price was fixed at Rs 574 per share. Kotak Mahindra Capital acted as the book-running lead manager, while KFin Technologies is the registrar to the issue.

SBI Funds Management IPO: What brokerages are saying

Brokerage houses largely believe the IPO has been priced at a discount to some listed peers, while pointing out that future performance will depend on the company’s business mix and growth.

Deven Choksey Research said, “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.”

Geojit Investments also highlighted the valuation, stating, “At the upper price band of Rs 574, SBIFML is valued at a P/E of 38x, moderately lower compared to peers.”

Similarly, Arihant Capital said, “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.”

What should investors watch on listing day?

It should be important to understand that the actual listing will ultimately depend on market sentiment when trading begins on July 21. Global cues, overall market direction and investor demand during the opening trade will determine whether SBI Funds Management lists above expectations, meets grey market estimates or settles at a different level.

Disclaimer: Investment in the securities market is subject to market risks; read all related documents carefully before investing. The market targets, Grey Market Premium (GMP), and brokerage commentary mentioned in this article are for informational purposes only and do not constitute an offer, solicitation, or recommendation to buy, sell, or hold any security. Past performance or unofficial market indicators are not indicative of future listing results, and readers are strongly advised to consult a SEBI-registered financial advisor before making any investment decisions. This disclaimer has been generated using AI to support user well-being and responsible content consumption.