SBI Funds Management IPO Highlights: Strong subscription on Day 2; GMP remains steady at 16%

As of the latest subscription data on Day 2, the SBI Funds Management IPO has been subscribed 2.53 times overall. The issue has received 1.58 times subscription from retail investors, 1.42 times from Qualified Institutional Buyers (QIBs), and 5.73 times from Non-Institutional Investors (NIIs), while bidding remains open.

According to Arihant Capital, “At the upper band of Rs 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. We recommend a “subscribe for long term” rating.”

The IPO of SBI Funds Management has been booked 1.82 times as of Day 02. The Non-Institutional Investor (NII) category has seen the strongest response, booking the issue 4.46 times. The retail investors booked the IPO 1.30 times. However, the Qualitative Institutional Buyers (QIBs) are yet to jump in fully. Tehy have subscribed the issue 0.35 times.

The SBI Funds Management IPO continued to see steady demand on Day 2 of bidding. As of now, the issue was subscribed 1.71 times overall. The retail portion was subscribed 1.31 times, while the Non-Institutional Investor (NII) category saw strong demand with 4.13 times subscription. Meanwhile, the Qualified Institutional Buyers (QIB) portion was subscribed 0.22 times.

Also read: SBI Funds Management IPO: Can SBI shareholders double their allotment chances? Here’s the rule that matters

"At the upper price band of Rs 574, SBI Funds Management is valued at a P/E of 38x, moderately lower compared to peers. Considering its robust fundamentals, industry leadership, and favorable long-term outlook, we recommend subscribing from a medium- to long-term investment perspective," said Geojit Research in an IPO note.

Its strategic partnership with Amundi enhances its investment capabilities and international reach, while favorable structural trends such as increasing financialization of household savings, rising SIP adoption, and growing mutual fund penetration are expected to support long-term growth. "At the upper price band, the issue is valued at a P/QAAUM of 9.3% and a P/E of 38.1x (based on FY26 EPS of Rs 15.1), indicating a fair valuation relative to peers. Considering its market leadership, strong profitability, operational efficiency, and robust long-term growth prospects, we assign “SUBSCRIBE” rating to the issue," said Choice Broking in an IPO note.

"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," noted Deven Cholsey Research in its IPO note.

Most market observers expect the issue to deliver a listing day pop but believe that near-term gains might be capped. However, they back the company for long-term gains.

Market veteran Arun Kejriwal pointed out that “the biggest strength of SBI MF is that roughly a fifth of its total AUM historically and currently comes from SBI. SBI doesn’t sell any other mutual fund. That is one part. The second part is that with this reach of SBI, SBI being the largest bank in the country, it is in nook and corner of the country.

From an investment perspective, he expects that there are chances of “listing pop but money in an AMC is never made for listing. It is made for investing and holding on like you would hold a mutual fund. So, there is opportunity, it is well priced and you need to value it not at Rs 30 trillion AMC value, but more at the mutual fund value and giving a significantly lower weightage for the lower yield instruments.”

Read More: SBI Funds Management IPO: Should you ‘Subscribe’ or ‘Avoid’ this Rs 9,813 crore issue?

The SBI Funds Management IPO has been subscribed 1.20 times as of 11:40 am

Here is a break-up of the subscription under various categories -

Overall – 1.20x

QIB – 0.08x

NII – 2.75x

Retail – 1x

Employee Reserved – 1.51x

Reserved shareholder portion – 1.90x

The Indian mutual fund industry has witnessed strong growth, supported by increasing financialisation of household savings, rising retail participation, greater SIP adoption, and a growing preference for professionally managed investment products. As a result, industry QAAUM grew at a CAGR of almost 20.5% between March 2021 and March 2026, reaching Rs 81.5 lakh crore. A significant structural shift in savings behavior has driven this growth, with retail and HNI investors contributing 60.1% of industry AUM in March 2026, up from 53.9% in March 2021.

The company has built a robust and scalable technology platform that supports secure, high-volume digital operations, personalized investor engagement, and efficient distribution management. Its strong digital adoption, advanced data analytics capabilities, and focus on innovation enable enhanced investor experiences, improved retention, and operational resilience. With a large direct digital user base and extensive distributor enablement tools, the company is well positioned to serve India’s growing digital investment ecosystem while maintaining strong security and regulatory compliance standards.

The company manages offshore India-focused mandates for global investors and offers international investment solutions to Indian investors through its partnership with Amundi. Distribution is supported by an omnichannel network comprising SBI's banking ecosystem, over 1,32,500 mutual fund distributors, digital platforms including YONO and InvesTap, and dedicated partner applications. The company follows a multi-style investment approach supported by strong governance, disciplined investment processes and an established track record of product innovation.

The SBI Funds Management IPO has been subscribed 0.72 times so far. The retail category was subscribed 0.69 times, QIBs saw 0.08 times subscription, while NII category recorded 1.41 times subscription so far on Day 2 of the IPO

The company serves a diversified investor base of almost 1.8 crore unique investors across its mutual fund business, comprising both retail and institutional clients. It manages a broad portfolio of 128 mutual fund schemes spanning equity and equity-oriented funds, debt funds, arbitrage funds, ETFs, index funds, overseas fund-of-funds, as well as liquid and overnight funds. Through its comprehensive product portfolio, SBIFML offers both actively managed and passive investment strategies, catering to a wide range of investor risk profiles and financial objectives.

"At the upper price band of Rs 574, SBIFML is valued at a P/E of 38x, moderately lower compared to peers. Considering its robust fundamentals, industry leadership, and favorable long-term outlook, we recommend subscribing from a medium- to long-term investment perspective," added Geojit Investments.

The company's promoters comprise SBI, Amundi India Holding, and Amundi Asset Management. SBI Funds Management benefits from a strong strategic partnership between its two promoter groups, combining SBI's extensive domestic distribution network and deep customer franchise with Amundi's global asset management expertise, investment capabilities and international presence. This dual-parent structure provides the company with a differentiated competitive advantage that is difficult to replicate.

In 2004, SBI Funds Management transitioned into a joint venture after Société Générale Asset Management S.A. (SGAM), the asset management arm of France-based Société Générale, acquired a 37% stake from State Bank of India (SBI). Subsequently, in 2010, SGAM merged with Crédit Agricole Asset Management (CAAM), the asset management arm of France-based Crédit Agricole, to form Amundi, one of the world's leading asset managers.

Following the merger, Amundi India Holding, a wholly owned subsidiary of Amundi Asset Management, acquired SGAM's shareholding in SBI Funds Management in 2011. Since then, the company has continued to operate as a strategic joint venture, leveraging SBI's extensive domestic distribution network and Amundi's global asset management expertise.

SBI FM's investment capabilities are supported by a large, experienced and stable investment team, following a team-based investment approach that emphasises institutional processes over individual fund managers, thereby reducing key-person risk and ensuring consistency across market cycles.

SBI Funds Management is one of the leading players in India's Systematic Investment Plan (SIP) market, with 16.21 million live SIP accounts, representing an 11.4% market share as of March 31, 2026. The company's strong presence in underpenetrated markets is reflected by the fact that 65.16% of its live SIP accounts (excluding SIF) originate from B-30 cities. This is supported by its extensive distribution network, which provides coverage across 98.19% of India's pin codes through its branch network and mutual fund distributor (MFD) ecosystem.

The SBI Funds Management IPO witnessed a steady response from investors on the first day of bidding, with the issue subscribed 0.68 times overall. The NII segment led the demand with 1.39 times subscription, while the shareholder and employee portions were booked 1.04 times and 1.02 times, respectively. The retail category was subscribed 0.62 times, while the QIB portion received bids for 0.08 times the shares on offer.

According to NSE data, the SBI Fund Management IPO has been subscribed 0.66 times so far. The non-institutional investor (NII) portion led the demand with 1.34 times subscription, while the employee quota was fully subscribed at 1.00 times.

The retail portion was booked 0.60 times, while the qualified institutional buyers (QIB) segment saw the lowest demand at 0.07 times.

According to Systematix Institutional Equities, the stock is attractively valued at the upper price band of ₹574, trading at a price-to-earnings (P/E) multiple of 38x based on FY26 earnings, compared with most of its larger peers. The brokerage has therefore recommended subscribing to the offer for sale with a long-term investment horizon.

SBI Funds Management IPO saw a steady investor response on day one as it received an overall subscription of 0.68x.

– Qualified Institutional Buyers (QIBs): 0.08 times

– Non-Institutional Investors (NIIs): 1.39 times

– Retail Investors: 0.62 times

– Employee: 1.02 times

– Shareholders: 1.04 times

"At the upper price band of ₹574, SBIFML is valued at a P/E of 38x, moderately lower compared to peers. Considering its robust fundamentals, industry leadership, and favorable long-term outlook, we recommend subscribing from a medium- to long-term investment perspective," Geojit Investment said in a report.

Giving the SBI Funds IPO a Subscribe rating, Systematix Institutional Equities said, "At the upper price band of Rs. 574, the stock is valued at a PE ratio of 38x on FY26 earnings, which appears attractive compared to its most large peers. We therefore recommend SUBSCRIBE to the company’s Offer for Sale with a long-term investment perspective. "

SBI Funds Management IPO saw a steady investor response on day one as it received an overall subscription of 0.68x.

- Qualified Institutional Buyers (QIBs): 0.08 times

- Non-Institutional Investors (NIIs): 1.39 times

- Retail Investors: 0.62 times

- Employee: 1.02 times

- Shareholders: 1.04 times

As per NSE data, the QIB portion of the SBI Fund Management IPO has received the lowest subscription at 0.07x, while the NII category has been oversubscribed 1.34x times. Meanwhile, the retail segment has been subscribed to 0.60x, and the employee category has received a subscription of 1.00x so far.

Overall, the IPO has been booked 0.66 times.

As per the latest update, in the unlisted markets, the shares of SBI Fund Management IPO were trading at a grey market premium of 15.68% or Rs 90, translating into an estimated listing price of Rs 664, based on the upper end of the price band.

However, it is important to note that GMP is an unofficial metric to determine listing price and fluctuates based on market mood and sentiment.

Choice Institutional Equities said, "At the upper price band, the issue is valued at a P/QAAUM of 9.3% and a P/E of 38.1x (based on FY26 EPS of Rs. 15.1), indicating a fair valuation relative to peers. However, its scale provides significant operating leverage, reflected in the industry's lowest cost-to-income ratio and lowest operating cost as a percentage of Quarterly Average Assets Under Management (QAAUM)."

"The company also enjoys deep penetration in B-30 cities, supported by its extensive distribution network and leadership in Tier II and Tier III markets. Additionally, its strategic partnership with Amundi enhances its investment capabilities and international reach."

"Favourable structural trends such as increasing financialisation of household savings, rising Systematic Investment Plan (SIP) adoption, and growing mutual fund penetration are expected to support long-term growth. Considering its market leadership, strong profitability, operational efficiency, and robust long-term growth prospects, we assign a 'SUBSCRIBE' rating to the issue."

The SBI Funds Management IPO continued to see investor participation on Day 1. As of the latest available data, the issue was subscribed 0.57 times overall. The non-institutional investor (NII) portion was fully subscribed at 1.05 times, while the retail investor category was subscribed 0.57 times. The qualified institutional buyer (QIB) segment saw a slower start, with subscriptions at 0.07 times.