9 hours ago
HomeMarket NewsSBI Funds Management shares set for stock market debut - Here's where it could list
Following SBI Funds Management's listing, the combined stake of the promoter and promoter group is expected to decline to 89.8% from 98.2%, while public shareholding will increase to 10.2%, improving the stock's free float and liquidity.
By Meghna Sen July 21, 2026, 6:41:04 AM IST (Updated)
3 Min Read
SBI Funds Management shares are set to debut on the stock exchanges on Tuesday, July 21, following a strong response to its ₹9,813-crore initial public offering (IPO).
Ahead of the listing, the stock is commanding a grey market premium (GMP) of around ₹105 per share. Based on the upper end of the IPO price band at ₹574, this implies an estimated listing price of about ₹679, or a premium of nearly 18% over the issue price.
However, market participants should note that the grey market is unofficial and GMP is only an indicator of investor sentiment. It does not guarantee the stock's actual listing performance.
Mahesh M Ojha of KC Securities has recommended a 'Hold' for investors who received allotment, citing the company's strong positioning to benefit from the long-term growth of the asset management industry.
However, he advised fresh investors to wait for the stock to stabilise after listing - especially if it debuts at a premium of 15-18% - before initiating new positions.
The IPO, which was open for subscription between July 14 and July 16, was subscribed 41.66 times overall. Institutional investors drove the demand, with the Qualified Institutional Buyers (QIB) portion subscribed 140.11 times. The Non-Institutional Investor (NII) segment was subscribed 22.51 times, while the Retail Individual Investor (RII) quota was booked 3.6 times.
The public issue was entirely an Offer for Sale (OFS) by State Bank of India
(SBI) and Amundi India Holding, meaning the company will not receive any proceeds from the IPO. Shares were offered in a price band of ₹545-574 apiece.
Following the listing, the combined stake of the promoter and promoter group is expected to decline to 89.8% from 98.2%, while public shareholding will increase to 10.2%, improving the stock's free float and liquidity.
SBI Funds Management is India's largest asset management company (AMC), with assets under management (AUM) of over ₹12.5 lakh crore and a market share of 15.3%. It is a joint venture between State Bank of India and Amundi, Europe's largest asset manager.
The company manages 128 investment schemes across equity, debt, hybrid, ETFs, index funds and overseas funds. It also offers portfolio management services (PMS), alternative investment funds (AIFs), specialised investment funds (SIFs) and advisory mandates, according to brokerage Nirmal Bang.
For FY26, SBI Funds Management reported a 17% year-on-year increase in total income to ₹4,976 crore, while net profit rose 21% to ₹3,067 crore. Its return on net worth (RoNW) stood at 43.02%.
SBI Funds has delivered consistent growth over the past 3 years
|
In cr |
FY23 |
FY24 |
FY25 |
FY26 |
CAGR FY23-26 |
| Revenue from Operations |
2,162 |
2,691 |
3,598 |
4,389 |
26% |
| EBITDA |
1,559 |
1,983 |
2,775 |
3,472 |
30% |
| EBITDA Margin |
72% |
74% |
77% |
79% | |
| PAT |
1,340 |
2,073 |
2,540 |
3,067 |
31% |
The growth has also come with improving profitability, with EBITDA margins expanding from 72% in FY23 to 79% in FY26, highlighting the operating leverage inherent in the AMC business.
The listing will make SBI Funds Management the third listed SBI Group company, after SBI Life Insurance and SBI Cards & Payment Services.
First Published:
Jul 21, 2026 6:34 AM
IST
Note To Readers
Disclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.
