The SBI Funds Management IPO, valued at Rs 9,813 crore, entered its final day of subscription on Thursday, July 16, after recording strong demand. By the end of Day 2, the issue was subscribed 2.77 times, with non-institutional investors (NIIs) leading the demand, booking their reserved portion 6.58 times, according to reports from Moneycontrol.
Offer Structure
The IPO is structured entirely as an Offer for Sale (OFS) of 17.10 crore shares, with the State Bank of India and Amundi selling part of their holdings. Following the IPO, the promoter and promoter group's stake is expected to decline to 89.8% from 98.2%, while public shareholding is projected to rise to 10.2%. Notably, SBI Funds Management will not receive any fresh capital from this public issue, as the proceeds will go entirely to the selling shareholders.
Market Expectations
The Grey Market Premium (GMP) for the IPO remained around 15-16%, indicating a potential listing price of nearly Rs 662 per share if current trends persist. Analysts suggest that the increase in public shareholding could enhance stock liquidity and expand its free float post-listing.
The strong subscription rates and positive GMP could lead to increased interest in SBI Funds Management shares upon listing, potentially driving up prices in the initial trading sessions. Investors will watch for final subscription numbers and the listing date as key indicators of market sentiment.