SBI Mutual Fund Arm Lists at 7% Premium, Below Grey Market Estimates
SBI Funds Management, the asset management arm of State Bank of India, made its stock market debut on Tuesday with a 7% premium over its issue price. The company is India's largest asset manager, with over ₹12.5 lakh crore in assets under management and a market share of more than 15% as of March 31.
The shares were listed at ₹613.30 on the National Stock Exchange, compared to an issue price of ₹575. During the session, the stock touched an intraday high of ₹624.95 before closing at ₹610.15, resulting in a listing day gain of approximately 6.3%.
With this debut, the company's market capitalization stood at ₹1.24 lakh crore. In comparison, peers ICICI Prudential Asset Management Company and HDFC Asset Management Company have market capitalisations of ₹1.56 lakh crore and ₹1.11 lakh crore, respectively.
The listing gains were below the expectations of the grey market, which had anticipated a premium of 13-16% on the debut day. The grey market is an unofficial market where shares are traded before their official listing.
