SBI Funds makes strong D-St debut, ends 6.3% above IPO price

Synopsis

SBI Funds Management debuted on the stock market at a premium price. The company raised over ₹9,813 crore through its initial public offering. SBI plans no further stake dilution in the asset management company. The fund house is investing in new Alternative Investment Funds capabilities. SBI Funds aims to expand its reach into B30 markets.

Mumbai: SBI Funds Management, India's largest mutual fund by assets, made its stock market debut on Tuesday at ₹613.30 on the NSE, a premium of 6.85% over its initial public offering price of ₹574 per share. The stock closed at ₹610.15 on the NSE, up 6.30% after hitting a high of 624.95.

At Tuesday's closing, the asset manager's market capitalisation stood at ₹1.24 lakh crore. The market value of ICICI Prudential Asset Management, the second largest mutual fund, was at ₹1.55 lakh crore.

SBI Funds, a joint venture between State Bank of India and French asset manager Amundi, raised ₹9,813 crore through the IPO, the largest in 2026 so far, with the issue getting subscribed 41.66 times.

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Both the shareholders sold a portion of their stakes, representing around 10% of the company's paid-up equity capital.

Speaking at a press conference post listing, CS Setty, Chairman, SBI, said the lender does not plan to further dilute its stake in the asset manager.

"At this moment, we are not looking for any more dilution. Of course, the whole dilution process will depend on the public shareholding norms of SBI. This is true for Amundi also.

Read more: SBI Funds Management shares list at 7% premium over IPO price on NSE

SBI has invested around ₹6,000 crore in SBI Funds Management, Setty said, adding that the bank's support has contributed to the AMC's growth and continues to bolster investor confidence.

Amundi's Deputy CEO, Nicolas Calcoen, said that the firm is committed to India and will continue to bring in global expertise to strengthen its presence.

The fund house is planning to launch new product capabilities under its Alternative Investment Funds (AIF). SBI Funds Management's CEO Debasish Mishra said, "Our Alternative Investment Funds (AIF) is one of the big areas where we are making major investments. So, you will see us announcing some new product capabilities on that, and we are also getting capabilities, both managing and raising funds."

He said Category II AIFs form a significant portion of the market, as the alternative investment fund space continues to grow.

SBI Funds Management managed assets under management worth roughly ₹12.5 lakh crore as of March 31, accounting for about 15.3% market share.

Setty said SBI Funds aims to deepen its footprint in B30 markets, locations beyond the top 30 mutual fund cities, while further strengthening its distribution network.

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