Shares of SBI Funds Management, India’s largest asset management company by quarterly average assets under management, fell below their IPO issue price for the first time on Friday, July 24, 2026.
Price action: SBI stock slipped 1 per cent to ₹572.15, dropping below its issue price of ₹574 per share on the BSE in intra-day deals. At 10:18 AM, the counter was quoting 0.62 per cent lower at ₹574.05, compared with a 1.13 per cent decline in the BSE Sensex. The stock has now declined 8 per cent from its listing-day high of ₹625, touched on Tuesday, July 21, 2026. Trading volumes were moderate, with a combined 1.8 million equity shares changing hands on the NSE and BSE.
IPO background: The issue had seen strong demand ahead of listing — it was subscribed 41.6 times overall, led by qualified institutional buyers who bid 140.11 times, while non-institutional investors subscribed 22.51 times, retail investors 3.59 times, shareholders 9.51 times, and employees 4.65 times. The company had already raised ₹2,663 crore through an anchor allotment ahead of the IPO, with participation from marquee names including BlackRock, Goldman Sachs, HDFC Mutual Fund, ICICI Prudential, LIC, Nomura India, and the Abu Dhabi Investment Authority.
Brokerage view: Equirus Securities has struck a bullish note, projecting a 16 per cent CAGR in overall mutual fund AQAAUM between FY26 and FY29E, driven by 17 per cent growth in equity AQAAUM, with revenue and EBITDA expected to grow at 14 per cent and 15 per cent CAGR respectively. The brokerage also flagged that with a dividend payout ratio above 50 per cent, return on equity is likely to stay above 40 per cent, and it initiated coverage with a ‘LONG’ rating and a March 2027 target price of ₹627, while flagging risks from adverse market trends, scheme underperformance and regulatory changes.
Other analysts echoed the long-term optimism while flagging near-term risks. Systematix Institutional Equities noted that the company — backed by the combined strengths of State Bank of India and Amundi Asset Management, has built a dominant position across retail, institutional and alternative asset management, aided by one of the broadest distribution networks in the country and deep penetration in both metro and B-30 markets. ICICI Securities pointed out that while SBI Funds leads the industry in AUM, SIPs and passive assets with a diversified product mix and strong operating efficiency, its earnings remain tied to equity market performance, and any change in mutual fund fee regulations could hit revenue and profitability.
Broader market context: The stock’s slide came on a weak day for Indian equities overall, with the Sensex down over 800 points amid a drop in the July flash PMI reading and a spike in oil prices reviving inflation concerns — a backdrop that likely added pressure to a stock already cooling off from its listing-day highs.
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