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SBI Funds Management IPO: Is it time to invest?

Analysts recommend holding SBI Funds Management shares.

Economic Times1 min

1IPO success

SBI Funds Management shares debuted at a 6.85% premium to IPO price, reaching a market cap of ₹1.24 lakh crore. However, this fell short of grey market expectations.

2Investor demand

The IPO was subscribed 42 times. QIBs oversubscribed their portion by 140x, while retail investors showed strong interest. The OFS raised ₹9,795 crore.

3Analyst views

Emkay Global initiated coverage with 'Buy' rating and ₹750 target. Equirus Securities recommended 'Long' with ₹675 target, citing SBI's distribution network advantages.

4Fundamentals

The company's healthy margins, strong ROEs and industry leadership are praised by analysts. Consistent SIP flows are particularly noteworthy.

5Investment strategy

Experts suggest short-term investors may book profits, while long-term holders should maintain positions for 1-2 years. New investors cautioned against chasing post-listing highs.

6Sector potential

India's growing middle class and financialization trend present growth opportunities for asset managers. SBI's brand strength positions it well to capitalize on this shift.

Original article: Economic Times — SBI Fon Yönetimi halka arzı: Zamanı geldi mi?