The initial public offering (IPO) of SBI Funds Management was subscribed 2.77 times at the end of the second day of bidding, with strong demand across all investor categories.
The issue attracted bids worth about ₹19,827 crore, with investors bidding for more than the shares on offer in every category.
Category-Wise Demand
The non-institutional investor (NII) segment continued to lead demand, subscribing the issue 6.58 times. Investors bid for 152.68 million shares against 23.20 million shares reserved for the category.
Within the NII segment, applications above ₹10 lakh, largely from high-net-worth individuals (HNIs), were subscribed 7.13 times, while the ₹2-10 lakh category was subscribed 5.49 times.
The retail individual investor (RII) portion was subscribed 1.61 times, with bids for 86.98 million shares against 54.13 million shares on offer.
The portion reserved for State Bank of India (SBI) shareholders was subscribed 3.98 times, while the employee quota received 2.27 times subscription.
Demand from qualified institutional buyers (QIBs) picked up sharply on the second day. The category, which was subscribed just 0.08 times on the first day, reached 1.50 times subscription, with bids for 46.40 million shares against 30.93 million shares reserved.
Brokerage Recommendations
Brokerages have largely maintained a positive view on the issue. Angel One said SBI Funds’ market leadership, strong parentage, expanding retail franchise, continued investments in digital capabilities, growing passive and alternative offerings, and increasing international presence position it well to benefit from the long-term growth of India’s asset management industry.
Aditya Birla Money also recommended subscribing to the issue, citing the fund house’s leadership position, extensive distribution network, strong profitability and multiple growth drivers. However, both brokerages flagged market volatility and regulatory changes as key risks to future profitability.
Ahead of the public issue, SBI Funds raised ₹1,880 crore through pre-IPO placement agreements and ₹2,663 crore from anchor investors. The IPO size came, as a result, came down to Rs 7,150 crore.
The IPO will close on July 16, with the shares scheduled to list on the stock exchanges on July 21.