The initial public offering (IPO) of SBI Funds Management, India’s largest asset management company by assets under management (AUM), received a strong response from investors, becoming fully subscribed on the second day of bidding on Wednesday.
The ₹9,812.91 crore IPO, which opened on July 14, received bids for 16.12 crore shares against 12.45 crore shares offered, resulting in an overall subscription of 1.29 times by noon on the second day, according to data from the National Stock Exchange (NSE).
Non-institutional investors (NIIs) led the demand, subscribing to three times their reserved quota. Retail individual investors (RIIs) also showed interest, subscribing to 1.05 times their allocated portion. However, qualified institutional buyers (QIBs) displayed limited participation, subscribing to only 6 per cent of their reserved quota.
Market experts remained positive about the IPO, highlighting SBI Funds Management’s strong market position and growth potential. The company manages ₹12.51 lakh crore in mutual fund assets, holds a significant market share in the mutual fund industry and has a strong presence in portfolio management and passive investment segments.
Analysts said the IPO’s valuation remains attractive compared with industry peers, with the company positioned to benefit from the long-term growth of institutional and passive investments in India.
