New Delhi, 21 July (H.S.): Shares of SBI Funds Management, the country’s largest asset management company (AMC), made a strong debut on the stock exchanges on Monday, rewarding its initial public offering (IPO) investors with early gains.

Under the IPO, the company’s shares were issued at Rs 574 apiece. The stock was listed on the BSE at Rs 610, registering a premium of 6.27 per cent, while it debuted on the NSE at Rs 613.30, reflecting a premium of 6.85 per cent over the issue price.

After listing, the shares gained further momentum due to buying interest and touched a high of Rs 624.90. However, selling pressure later dragged the stock down to Rs 610. After trading until 10:30 am, shares of SBI Funds Management were trading at Rs 617.80.

At this level, IPO investors had gained Rs 43.80 per share, or 7.63 per cent, during the day’s trading so far.

The Rs 9,812.91 crore IPO of SBI Funds Management was open for subscription from July 14 to July 16. The issue received an overwhelming response from investors and was subscribed 41.73 times overall.

The portion reserved for Qualified Institutional Buyers (QIBs) was subscribed 140.11 times, while the Non-Institutional Investors (NIIs) category received 22.51 times subscription. The retail investor portion was subscribed 3.76 times.

The employee reservation portion received 4.65 times subscription, while the shareholder reservation category was subscribed 9.52 times.

Offer for Sale Issue

The IPO did not include any fresh issue of shares. Instead, the offering was entirely an Offer for Sale (OFS), involving the sale of 17,09,56,631 shares with a face value of Re 1 each.

Under the OFS, 12,83,34,397 shares were sold by the State Bank of India (SBI), while 7,53,74,842 shares were sold by Amundi India Holding.

Since the issue was completely an OFS, the proceeds from the IPO will not go to SBI Funds Management. The funds raised will be received by the selling shareholders, SBI and Amundi India Holding.

Strong Financial Performance

According to the Draft Red Herring Prospectus (DRHP) filed with the Securities and Exchange Board of India (SEBI), SBI Funds Management has witnessed consistent growth in its financial performance.

The company reported a net profit of Rs 2,072.79 crore in the financial year 2023-24, which increased to Rs 2,540.15 crore in FY 2024-25. In FY 2025-26, the company’s net profit further rose to Rs 3,067.38 crore.

The company’s revenue also recorded steady growth during this period. Total revenue increased from Rs 3,426.08 crore in FY 2023-24 to Rs 4,236.15 crore in FY 2024-25. In FY 2025-26, revenue further climbed to Rs 4,976.11 crore.

The company’s reserves and surplus also improved during the period. It increased from Rs 182.02 crore in FY 2023-24 to Rs 255.12 crore in FY 2024-25 and reached Rs 326.73 crore in FY 2025-26.

The company’s net worth witnessed fluctuations during the period. It stood at Rs 6,747.45 crore in FY 2023-24 and increased to Rs 8,297.53 crore in FY 2024-25. However, it declined to Rs 5,963.06 crore in FY 2025-26.

The company’s EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortisation) also showed strong growth, rising from Rs 2,718.82 crore in FY 2023-24 to Rs 3,412.94 crore in FY 2024-25. In FY 2025-26, EBITDA increased further to Rs 4,058.44 crore.

SBI Funds Management, a joint venture between the State Bank of India and Amundi, is one of India’s leading asset management companies, offering a wide range of mutual fund and investment solutions to investors.

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Hindusthan Samachar / Jun Sarkar