Shares of SBI Funds Management, the asset management arm jointly held by State Bank of India (SBI) and Amundi, made a muted entry into the stock market on Tuesday, July 21. The stock listed on the National Stock Exchange (NSE) at Rs 613.30, marking a 6.85 percent premium over its issue price of Rs 574. Similarly, on BSE Ltd, the shares commenced trading at Rs 610, a 6.27 percent premium.
This debut performance fell considerably short of pre-listing expectations. Ahead of its listing, the company's shares were commanding a grey market premium (GMP) of Rs 100-105 apiece, suggesting a potential listing gain of 17-18 percent for investors. The GMP had remained relatively stable, hovering between Rs 90-110 throughout the initial public offering (IPO) subscription period.
Investor Returns and IPO Details
Despite the muted listing, retail investors who secured a single lot of 26 equity shares saw a profit of Rs 1,021.8 on their initial investment of Rs 14,924. High Net Worth Individual (HNI) investors, who received 14 lots totaling 364 equity shares, realized a profit of Rs 14,305.2 on an investment of Rs 2,08,936. SBI shareholders, applying for a full application of at least 37 equity shares, gained Rs 1,454.1.
The IPO for SBI Funds Management was open for subscription from July 14 to July 16. The shares were offered in a price band of Rs 545-574 apiece, with a lot size of 26 shares. The company aimed to raise Rs 9,813 crore through this offering, which was entirely an offer-for-sale of up to 17,09,56,631 equity shares by its parent entities, State Bank of India and Amundi.
Subscription Performance and Company Profile
The IPO witnessed robust subscription across various investor categories, ultimately being subscribed 41.66 times overall. Qualified Institutional Buyers (QIBs) showed strong interest, with their portion subscribed 140.11 times. Non-institutional investors' quota was booked 22.51 times, while the retail portion saw a subscription of 3.6 times. Employee and shareholder segments were subscribed 4.65 times and 9.52 times, respectively.
Established in 1992, SBI Funds Management is recognized as India's largest asset management company based on its assets under management. As a joint venture between State Bank of India and Amundi, it offers a diverse range of investment products, including equity funds, debt funds, hybrid funds, Exchange Traded Funds (ETFs), and portfolio management services.