The SBI Funds Management IPO wrapped up its second day of bidding, with the offer being fully subscribed. The issue received bids for 34.54 crore equity shares against its ask of 12.45 crore. So far, the IPO has received an overall subscription of 2.77 times.
SBI Funds IPO: Strong NII, Retail participation
The Rs 9,813 crore offer has seen overwhelming demand from the non-institutional investor (NII) segment, with the category subscribed 6.58 times. The Qualified Institutional Buyer (QIB) category picked up pace on the second day, being fully subscribed at 1.50 times.
The retail applicant category also gained momentum, with subscription reaching 1.61 times. Meanwhile, the employee portion nearly doubled from yesterday to 2.27 times, while the shareholder segment ended the second day with a subscription of 3.98 times.
SBI Funds Management IPO: Day 2 subscription snapshot
SBI Funds Management IPO saw a healthy investor response on day two, receiving an overall subscription of 2.77 times.
| Investor Category | Subscription (Day 2) |
| Qualified Institutional Buyers (QIBs) | 1.50x |
| Non-Institutional Investors (NIIs) | 6.58x |
| Retail Investors (RIIs) | 1.61x |
| Employee | 2.27x |
| Shareholder | 3.98x |
| Overall | 2.77x |
SBI Funds Management IPO: GMP nearly 16%
In the unlisted markets, the shares of SBI Funds Management IPO are trading at a premium of Rs 90 or 15.68%, translating into an estimated listing price of Rs 664, based on the upper end of the price band.
The company has set the price band between Rs 545 and Rs 574 per equity share. It seeks to raise Rs 9,813 crore entirely through an Offer for Sale (OFS).
However, it is important to note that GMP is an unofficial metric to determine the listing price and fluctuates based on market mood and sentiment.
SBI Funds Management IPO: Expert take
Giving the IPO a ‘Subscribe’ rating, Adity Birla Capital Stocks and Securities in a report said, “ At the upper price band of Rs 574, the stock trades at ~38.1x FY26 earnings, which appears reasonable relative to listed peers making it an attractive play on India’s long-term wealth creation story.”
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.”