First Bell: SBI Funds' investors in line for 10-15% listing pop

Mumbai: SBI Funds Management, India's largest mutual fund, is expected to make its stock market debut on Tuesday at atleast 10-15% above its IPO price of ₹574, according to analysts.

The ₹9,813 crore IPO, the largest in 2026 so far, was subscribed 41.66 times on its final day Thursday.As of Monday evening, the shares were trading at a grey market premium (GMP) of ₹104 apiece, implying a listing gain of 18.1% over the issue price.

The GMP is an indicator of the listing gains expected for newly listed shares.Analysts said investors allotted shares in SBI Funds Management could either book listing gains or stay invested, depending on their holding period."We expect the stock to list at 15% premium, and investors with a short-term horizon may consider booking profits if they plan to participate in upcoming IPOs," Geetanjali Kedia, IPO expert at SPTulsian Investment Advisers.

"Given the company's strong fundamentals, long-term investors can consider holding the stock for 1-2 years for healthy returns."Also Read: SBI Funds Management IPO listing: GMP signals 18% listing gainAt the IPO price of ₹574, the market capitalisation of SBI Funds Management is ₹1.16 lakh crore.

The market value of ICICI Prudential Asset Management, India's second largest mutual fund, and HDFC Asset Management, the third largest, are ₹1.54 lakh crore and ₹1.13 lakh crore, respectively."While the IPO was attractively valued compared with listed AMC peers, a strong listing is likely to narrow that valuation gap," said Vaqarjaved Khan, senior fundamental analyst at Angel One.

"Allottees can consider holding the stock, given its strong fundamentals, healthy margins, ROEs, and leadership in the AMC segment.

However, fresh investors should avoid chasing the stock at elevated post-listing levels."SBI owns about 61.9% of the asset manager, while France-based Amundi holds around 36.4%.Narendra Solanki, head of fundamental research at Anand Rathi Share and Stock Brokers, said investors who received allotment should consider holding the stock for the long term, given its strong growth prospects. ...