Investors eye SBI Funds Management IPO: GMP jumped 5% in 2 days, issue worth Rs 11,692 crore will open from July 14 …

Business Desk – SBI Funds Management IPO, which is among the most popular IPOs of the country, is going to open for investors from July 14. Even before the issue opens, there is tremendous enthusiasm about it in the gray market. Its gray market premium (GMP) has increased by about 5% in the last two days, which has further increased the interest of investors. Investors will be able to apply for this mega IPO of Rs 11,692.91 crore till July 16. The company’s shares are likely to be listed on NSE and BSE on July 21.

GMP jumped 5% in two days

The gray market premium of SBI Funds Management IPO is continuously strengthening. Its GMP on July 9 was Rs 84, which was about 14.6% premium over the cap price of the issue. By July 11, GMP increased to Rs 110. That means in two days it increased by Rs 26 i.e. about 5%. The current GMP represents a premium of approximately 19.1% over the issue price.

Fully OFS issue of Rs 11,692 crore

This is a book-built IPO of Rs 11,692.91 crore. This is a completely Offer for Sale (OFS) based issue, in which about 20.37 crore shares will be sold. The company is not issuing any new shares through this IPO.

Complete information about price band and investment

The price band of SBI Funds Management IPO has been fixed at Rs 545 to Rs 574 per share. There will be 26 shares in one lot. According to the upper price band, the retail investor will have to invest at least Rs 14,924.

Who is selling his stake?

In this IPO, State Bank of India (SBI) will sell about 12,83,34,397 shares i.e. about 6.3% of its stake. Whereas Amundi India Holding will sell about 7,53,74,842 shares i.e. about 3.7% stake through offer for sale.

The country’s largest asset management company

SBI Funds Management is India’s largest asset management company (AMC). According to the CRISIL report included in the company’s red herring prospectus, as of March 31, 2026, the company’s market share based on quarterly average assets under management (QAAUM) of mutual funds stood at 15.3%.

Strong growth in QAAUM in two years

Between March 2024 and March 2026, the company’s mutual fund QAAUM recorded a compound annual growth rate (CAGR) of 16.97%. By March 31, 2026, the company’s mutual fund QAAUM increased to Rs 12,509.98 billion, whereas a year ago it was Rs 10,729.49 billion. If Portfolio Management Services (PMS), Advisory and Alternative Investment Fund (AIF) businesses are also included, the total QAAUM of the company reaches Rs 29,461.05 billion.

Lower expenses, better profit potential

The biggest strength of SBI Funds Management is its low operating expenses. The company’s operating expense ratio (OER) stood at only 0.08% in FY26, which is the lowest among the top 10 asset management companies in India. In comparison, the operating expense ratio of other big AMC companies remained between 0.10% to 0.25%. The lower costs reflect the company’s better operating efficiencies and stronger margins.

What does it mean for investors?

Factors like continuous increase in GMP, status of the country’s largest AMC, strong market share, fast QAAUM growth and low operating expenses are making SBI Funds Management IPO one of the most talked about issues in the market. However, before deciding to invest in IPO, investors must also assess the company’s financial performance, valuation and their risk appetite.