SBI Funds Management IPO Subscribed 2.77x on Day 2; GMP Hints at 16% Listing Premium

MUMBAI — The mega ₹9,812.91 crore initial public offering (IPO) of SBI Funds Management Ltd has entered its final day of bidding today, July 16, 2026, with robust momentum. By the end of Day 2, the public issue was comfortably oversubscribed 2.77 times, driven by aggressive bidding from Non-Institutional Investors (NIIs) and existing shareholders of the company. Unofficial grey market trends indicate a strong debut on the bourses, with the stock commanding a premium of around 16% over its upper price band.

Subscription Breakdown (As of Day 2)

The public issue witnessed broad-based participation across all investor categories by the close of the second day, comfortably crossing its base offer:

• Non-Institutional Investors (NIIs): Led the charge, subscribing 6.58 times the allotted quota.

• Shareholders: Subscribed 3.98 times.

• Employees: Subscribed 2.27 times.

• Retail Individual Investors (RIIs): Subscribed 1.61 times.

• Qualified Institutional Buyers (QIBs): Subscribed 1.50 times.

• Total Overall Subscription: 2.77 times.

Grey Market Premium (GMP) and Listing Expectations

Ahead of its highly anticipated listing, unlisted shares of SBI Funds Management are trading at a solid premium in the unofficial grey market:

• Current GMP: Shares are trading at a premium of ₹89 to ₹92.

• Estimated Listing Price: Factoring in the upper price band of ₹574, the estimated listing price stands at around ₹666 per share. This indicates a potential listing gain of roughly 16% for allottees.

Financial and Operational Dominance

As the investment manager of SBI Mutual Fund, the company is an industry titan. As of December 2025, it reported a Quarterly Average Assets Under Management (QAAUM) of ₹29.04 lakh crore, capturing approximately 15.5% of India's entire mutual fund industry AUM.

Financially, the company has demonstrated a consistent upward trajectory. Its Profit After Tax (PAT) climbed to ₹2,540.15 crore in FY25, up from ₹2,072.79 crore in FY24. Furthermore, its revenue from operations for FY25 stood at an impressive ₹3,597.76 crore.

Issue Structure and Retail Entry

The entire ₹9,812.91 crore issue is an Offer for Sale (OFS), meaning no fresh capital is being raised for the company itself. The selling promoters include the State Bank of India (selling up to 9.95 crore shares) and Amundi India Holding (selling up to 7.14 crore shares).

The price band for the issue is fixed at ₹545 to ₹574 per equity share. For retail investors, the lot size is 26 shares, meaning a minimum investment of ₹14,924 is required at the upper price cap.

Important Timeline (Tentative)

Investors should track the following key dates as the IPO process concludes:

• IPO Closing Date: Thursday, 16 July 2026 (Today)

• Basis of Allotment Finalisation: Friday, 17 July 2026

• Refund Initiation / Demat Credit: Monday, 20 July 2026

• Listing Date (BSE & NSE): Tuesday, 21 July 2026