SBI Funds Management Share Price Falls Below IPO Price, Extends Decline From Listing High

The SBI Funds Management share price slipped below its initial public offering (IPO) issue price during intra-day trading on Friday, declining to ₹572.15 on the BSE. The stock has now fallen about 8% from its listing-day high of ₹625 recorded on July 21, even as brokerages remain constructive on its long-term growth prospects.

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At 10:18 a.m., the SBI Funds Management share price was trading at ₹574.05, down 0.62%. During the same period, the BSE Sensex was down 1.13%. Trading activity remained healthy, with a combined 1.8 million equity shares changing hands on the NSE and BSE.

Stock Trades Below IPO Issue Price

The decline pushed the stock below its IPO issue price of ₹574 per share. SBI Funds Management made its market debut earlier this week following a widely subscribed public issue.

The IPO received an overall subscription of 41.6 times on the final day of bidding. Qualified institutional buyers (QIBs) led demand with subscriptions of 140.11 times, while the non-institutional investor (NII) portion was subscribed 22.51 times. The retail investor category was subscribed 3.59 times, with shareholders and employees subscribing 9.51 times and 4.65 times, respectively.

Before the public issue opened, the company raised ₹2,663 crore through its anchor investor allocation.

Institutional Investors Backed The IPO

The anchor book included participation from several domestic and global institutional investors, including BlackRock, Goldman Sachs, HDFC Mutual Fund, ICICI Prudential, Life Insurance Corporation of India (LIC), Nomura India and the Abu Dhabi Investment Authority.

The strong institutional participation reflected investor interest in India’s largest asset management company by quarterly average assets under management (QAAUM).

Brokerages Maintain Positive Outlook

Equirus Securities expects the mutual fund industry’s average quarterly assets under management (AQAAUM) to grow at a compound annual growth rate (CAGR) of 16% between FY26 and FY29, supported by a projected 17% CAGR in equity AQAAUM.

The brokerage estimates revenue and EBITDA to grow at 14% and 15% CAGR, respectively, over the same period. It has initiated coverage on the stock with a “Long” rating and assigned a target price of ₹627 for March 2027. According to the brokerage, potential risks include adverse market conditions, underperformance of investment schemes and regulatory changes.

In its IPO note, Systematix Institutional Equities said SBI Funds Management benefits from the combined strengths of State Bank of India and Amundi Asset Management, supported by an extensive distribution network and a broad presence across retail, institutional and alternative asset management businesses.

ICICI Securities noted that the company is India’s largest asset management company by assets under management, with leadership across mutual fund assets, systematic investment plans (SIPs) and passive investment products. However, the brokerage also highlighted that earnings remain sensitive to equity market performance and changes in mutual fund fee regulations.

Despite the recent weakness in the SBI Funds Management share price, market participants are expected to monitor the stock as trading stabilises following its recent listing and as investors assess its long-term growth trajectory.