SBI Funds Management shares fell 1% to ₹572.15 on Friday, declining for the second consecutive session and trading below the ₹574 issue price on BSE. The stock has now declined 8% from its listing day high of ₹625 touched on Tuesday, July 21, 2026, marking a significant retreat from its debut performance. The stock had made its market debut on Tuesday, July 21, 2026, listing at ₹613.30 on NSE and ₹610 on BSE, representing a 7% premium over the issue price of ₹574. However, the stock surged more than 2% to touch the day's high of ₹624.95 from the opening price but came off that level.
Despite the post-listing decline, brokerages remain bullish on SBI Funds Management with multiple firms maintaining positive ratings. Emkay Global Financial Services initiated coverage on SBI Funds Management with a 'Buy' recommendation and target price of ₹750 per share, representing a potential upside of nearly 31% from the IPO price of ₹574. Equirus Securities also initiated coverage with a 'Long' rating and March 2027 target of ₹675, while Arihant Capital recommended a 'Subscribe' rating with a 'Long' rating and March 2027 target of ₹675. The firms cite strong parentage, vast distribution network, sticky SIP flows, robust profitability and long-term mutual fund growth opportunities as key factors supporting their bullish views.
As India's largest mutual fund house, SBI Funds Management manages approximately ₹12.6 lakh crore in mutual fund assets, representing about 15.1% of the entire industry. The company's subscription numbers were record-setting, with the issue being subscribed 41.66 times overall, including institutional investors bidding an extraordinary 140.11 times their quota. The Non-Institutional Investor (NII) segment was booked 22.51 times, while the Retail Individual Investor (RII) category received subscriptions of 3.60 times. The listing at ₹613.30 values the company at approximately ₹1.24 lakh crore market capitalization. According to multiple brokerages, the company's equity QAAUM grew at 33% CAGR over FY21-June 2026, with market share rising to 12.7% from 10.2%. The company's strong institutional backing and favourable industry tailwinds position it well to benefit from India's financialisation trend, as household savings increasingly move towards mutual funds, systematic investment plans (SIPs) and market-linked investment products.
The ₹9,813-crore IPO was subscribed 41.6 times overall, led by qualified institutional buyers who bid 140.11 times their quota. Non-institutional investors subscribed 22.51 times, retail investors 3.59 times, shareholders 9.51 times, and employees 4.65 times. The company raised ₹2,663 crore through an anchor allotment prior to the IPO, with prominent institutional investors including BlackRock, Goldman Sachs, HDFC Mutual Fund, ICICI Prudential, Life Insurance Corporation (LIC) of India, Nomura India, and the Abu Dhabi Investment Authority participating in the anchor allotment. At 10:18 AM on Friday, 1.8 million equity shares changed hands on NSE and BSE, with the stock declining 0.62% to ₹574.05, compared to a 1.13% decline in the BSE Sensex.
