Mutual fund company ‘SBI Funds Management’ has entered the stock market. On Tuesday, the company’s much awaited IPO of Rs 9,813 crore has opened for investors. You can place bets in it till 16th July. The company has fixed the price band of Rs 545 to Rs 574 per share for this. If you are planning to invest money in this, then you will have to bid for a lot of at least 26 shares. That is, according to the upper price band, you will have to invest a minimum of Rs 14,924.
There is a huge buzz in the gray market
An initial estimate of how the listing of any IPO will be in the stock market is made from the Gray Market Premium (GMP). There is a good atmosphere in the gray market regarding the IPO of SBI Funds Management. At present its GMP is running at a premium of around 18 percent. Although this is not an official figure, yet it is a clear indication that there is a lot of enthusiasm among common investors and stalwarts regarding the shares of the country’s largest asset management company. If successful, this share will be listed on both the major exchanges BSE and NSE.
Should you invest money?
The leading brokerage houses of the market are also keeping a close eye on this issue. Major brokerage firms like Anand Rathi to Nirmal Bang have advised to ‘subscribe’ i.e. invest money in this IPO. Experts believe that the business model of the company is quite strong. In the last few years, the company has continuously earned excellent profits.
The company’s revenue increased to Rs 4,389 crore in FY 2026, which was Rs 2,691 crore in 2024. Similarly, net profit has also jumped from Rs 2,073 crore (FY24) to Rs 3,067 crore (FY26). The thing to note is that this entire IPO is ‘Offer for Sale’ (OFS). That means the promoters (SBI and Amundi) are selling their 17.10 crore shares and the entire IPO money will go directly to them and not to the company’s account.
The real power of the country’s largest mutual fund company
SBI Funds Management is not an ordinary name. It is India’s largest asset management company with an average AUM (QAAUM) of Rs 12.5 lakh crore by March 2026 and 15.3% market share. Its biggest strength is its huge network. It has access to 98.2% pin codes of the country and more than 1.32 lakh mutual fund distributors are associated with it.
With SBI and global partner Amundi, it gets tremendous backing. The company has more than 1.62 crore active SIP accounts, through which regular investments of Rs 4,059 crore come every month. Its digital platform is also very strong, where 94.3% of transactions take place entirely online.
Know some important risks before investing
Every coin has two sides. Investing in the stock market is never completely risk free. The earnings of SBI Funds Management directly depend on the performance of the share and debt markets. If there is a huge decline in the market or investors start withdrawing their money rapidly, then the company’s income can be directly affected. Apart from this, the mutual fund industry is now facing tough challenge from new digital companies, ETFs and direct equity investments. Due to increasing competition, there may be pressure on the company’s margins in the future.
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