Shares of SBI Funds Management entered the stock market on Tuesday and were listed at 7 percent more than the IPO price. The stock opened at Rs 610 on BSE, which was 6.27 per cent higher than the issue price of Rs 574. It was listed on NSE at Rs 613.30, which was 6.85 percent more than the offer price. Investors had shown a lot of interest in this IPO of Rs 9,813 crore and there were indications of a strong start from the gray market also. Prior to listing, the gray market premium (GMP) of the stock was around Rs 97, giving an estimated listing price of around Rs 671 or 16.9 per cent above the issue price. However, the actual listing was far below gray market expectations.
How are the figures visible in the stock market?
Talking about the shares of SBI Funds Management, they are trading at Rs 617.50 on BSE at 10.20 am, an increase of about 8 percent from the issue price. Which reached Rs 624.80 during the session. The special thing is that this is also not a double digit return. On the other hand, if we talk about National Stock Exchange, it is trading at Rs 615.70 with an increase of more than 7 percent from the issue price. Whereas during the trading session, the share had reached Rs 624.80 with a rise of about 9 percent from the issue price.
Falling stock market environment
The special thing is that an atmosphere of decline is being seen in the stock market. During the trading session, the Sensex fell by 215 points at 77,493.03 points. Whereas the Sensex opened with a slight fall at 77,649.63 points. On the other hand, Nifty, the main index of the National Stock Exchange, is also under a lot of pressure. Nifty Subi was seen down by more than 50 points at 24,188.10 points at 10.25 am. However, in the morning the opening of Nifty was seen at 24,216.05 points.
IPO got tremendous response from investors
This IPO was open for subscription from July 14 to July 16 and was subscribed a total of 41.66 times, indicating strong demand among all types of investors. Institutional investors showed the most interest in it. The share of Qualified Institutional Buyers (QIB) was subscribed 140.11 times. The Non-Institutional Investor (NII) segment was subscribed 22.51 times, while the Retail Individual Investor (RII) category was subscribed 3.60 times. The price of this issue was fixed in the range of Rs 545-574 per share.
The entire issue was OFS based.
The IPO was launched entirely as an ‘Offer for Sale’ (OFS) of 17.10 crore shares by the existing shareholders – State Bank of India (SBI) and Amundi. Since there was no new issue of shares, the company will not make any money from this offering. The entire amount will go to the selling shareholders. After the listing, the total stake of the promoter and promoter group is expected to reduce from 98.2 per cent to 89.8 per cent, while the public shareholding will increase to 10.2 per cent, which may improve liquidity in the stock.
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