SBI Funds Management, the asset management arm of State Bank of India, recorded a 0.71 times subscription on the first day of its initial public offering.
The ₹11,693 crore offer for sale, which aims to reduce the promoter stake to 88%, saw robust participation from non-institutional investors (NII) and retail segments, according to Livemint.
Grey market premiums (GMP) are signaling a potential 16% listing premium, suggesting that investors expect the stock to trade well above its issue price once it lists.
In contrast, interest from qualified institutional buyers (QIBs) was notably lower, reflecting a cautious stance among large funds on the opening day of the book build, which runs until Thursday, July 16.
Market sentiment appears positive despite the sub-par overall subscription figure.
Grey market premiums (GMP) are signaling a potential 16% listing premium, suggesting that investors expect the stock to trade well above its issue price once it lists.
This pricing signal indicates that the strong NII demand may be sufficient to drive a successful listing, even if institutional backing was not as aggressive as anticipated on Day 1.