SBI Funds Management's $1.03 billion initial public offering (IPO) was fully subscribed on the second day of bidding on Wednesday, as investors bet on the growth prospects of India's asset management industry.
The IPO of India's largest asset manager received bids for 126.74 million shares, against 124.56 million on offer, as of 10:48 a.m. IST, exchange data showed.
The asset manager had sold shares worth $278.5 million to the so-called anchor investors, including BlackRock, the sovereign wealth funds of Singapore, Abu Dhabi and Norway, ahead of the public launch of the IPO.
SBI Funds Management, a joint venture between the country's largest lender State Bank of India (SBI), and Europe's largest asset manager Amundi, had assets under management worth 12.5 trillion rupees ($131.1 billion), as of end-March 2026.
The IPO comes after a subdued first half of the year for primary market fundraising in India as Iran war-driven spike in crude oil prices raised growth concerns in Asia's third-largest economy.
Non-institutional investors bid for 51.79 million shares, 2.23 times the number on offer, while retail investors bid for 47.18 million shares, 87% of the shares set aside for them.
The portion of shares reserved for SBI shareholders was subscribed 1.6 times. Qualified institutional buyers, who typically turn active on the final day of bidding, subscribed to 8% of the shares.
The IPO will close for subscription on July 16, and the asset manager's shares are expected to begin trading on July 21.
India's equity market has seen a sharp increase in investor numbers, with mutual funds also recording steady inflows, boosting the prospects for the SBI Funds Management IPO.
Indian equity mutual funds have recorded 64 consecutive months of inflows through June 2026, with a consistent rise in systematic investment plan (SIP) inflows, the preferred route for retail investors.
However, SBI Funds Management faces stiff competition from peers ICICI Prudential Asset Management, HDFC Asset Management, Nippon Life India Asset Management, and others in a crowded asset management industry in India.
SBI Funds Management's IPO is valued at 38.12 times its fiscal year 2026 earnings per share, below the industry average of 41.64 times.
