Up in the air! Can SBI Funds Management IPO investors look past OFS to expect strong listing day gains?

SBI Funds Management's Rs 11,600 crore IPO is a 100% offer for sale (OFS) with up to 12.83 crore shares from SBI and 7.54 crore shares from Amundi India Holding, so the company receives no proceeds. At the upper price band of Rs 574, the issue is valued at about 38.1 times FY26 earnings, below the industry average of 41.64 times, with a grey market premium of around 15% indicating steady demand. Brokerages recommend subscribing for the long term citing strong fundamentals (FY26 revenue Rs 4,976 crore, PAT Rs 3,067 crore up 21% YoY, EBITDA margin around 82%), though the OFS structure and large issue size may limit sharp listing gains.