The SBI Funds Management initial public offering (IPO), the biggest public issue of the calendar year, closed on Thursday with an overall subscription of 41.66 times, making it the third most subscribed IPO among issues larger than Rs 10,000 crore, after Reliance Power and LG Electronics.
The Rs 7,150-crore offer received bids worth nearly Rs 3 lakh crore (Rs 2.98 lakh crore), excluding the pre-IPO placement and anchor investors’ allocation. Ahead of the public issue, SBI Funds raised ₹1,880 crore through pre-IPO placement agreements and ₹2,663 crore from anchor investors.
Retail participation stood out, with the category subscribed 3.6 times — the highest for any IPO since the Reliance Power issue, which was subscribed 13.6 times in 2008.
Record Demand
The qualified institutional buyers (QIB) portion was subscribed 140.11 times, the second-highest ever after LG Electronics. QIBs bid for 4.33 billion shares against the 30.93 million shares reserved for the category.
Domestic financial institutions, including banks and insurance companies, accounted for nearly half the QIB demand, bidding for 2.13 billion shares. Foreign institutional investors bid for 1.54 billion shares, while domestic mutual funds applied for 245.84 million shares. Other QIBs accounted for bids worth 422.69 million shares.
The non-institutional investors (NII) segment was subscribed 22.51 times. Investors bid for 522.18 million shares against the 23.20 million shares reserved.
Within the NII category, high net-worth investors applying for more than Rs 10 lakh subscribed their portion 26.01 times, bidding for 402.22 million shares against 15.46 million shares on offer. The Rs 2 lakh-Rs 10 lakh category was subscribed 15.51 times, receiving bids for 119.96 million shares against 7.73 million shares reserved.
Allocation Tiers
The employee and shareholder categories were subscribed 4.65 times and 9.52 times, respectively. SBI shareholders bid for 124.26 million shares against 13.06 million shares reserved, while employees applied for 15.15 million shares against 3.26 million shares on offer.
Share allotment is scheduled for July 17, while the stock is expected to list on the exchanges on July 21.