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Another big bang has started in the Indian IPO market from today. The IPO of SBI Funds Management, associated with the country’s most trusted banking group, has been fully opened for subscription to common retail investors from today i.e. Tuesday. There is a huge buzz in the market about this IPO, and just before its opening, the company has made its strong position felt by raising huge funds from the market through Anchor Investors. If you are also thinking of investing money in this IPO, then it is very important for you to understand every aspect of it and the latest signals of the gray market before placing your bet.
Anchor Book got a bumper start
On Monday, just a day before the official opening of the public issue, SBI Funds tried to gauge the mood of the market through anchor investors, in which the company got great success. The company has raised a whopping Rs 2,663 crore from domestic and global institutional investors through the anchor book. This huge interest from leading fund houses and foreign portfolio investors (FPIs) has made it clear how deep the confidence of large institutional buyers is in the business model and future growth of this asset management company (AMC).
Movement visible in gray market
The initial estimate of how the listing of any IPO will be is made from the Gray Market Premium i.e. GMP. There has been a lot of activity in the corridors of the gray market regarding SBI Funds IPO. According to unofficial market experts, its GMP is continuously improving after the strong response from anchor investors. The current trend of the gray market is indicating that investors are very excited about this stock and on the day of listing it can give decent profits to its investors. However, market experts say that instead of investing based only on GMP, it is a safer strategy to focus on the fundamentals of the company.
Know the complete details of price band and lot size
If you are planning to place bets in this IPO from Delhi, Mumbai, Kolkata, Bengaluru or any part of the country, then you must have accurate information about its price band and lot size. The company has set a very competitive price band for this public issue, so that retail investors also get full opportunity to participate in it. As a retail investor, you can bid for a minimum of one lot, consisting of a certain number of shares. Leading brokers and market analysts across the country have given a ‘Subscribe’ rating to this IPO, given the company’s long-term track record and its strong presence in the Indian mutual fund industry.
Should you invest money in this IPO?
There is currently a period of ups and downs in the Indian stock market, but despite this there is no shortage of liquidity in the primary market (IPO Market). SBI Funds Management has a strong network in every corner of the country, especially in Tier-2 and Tier-3 cities, which gives it a huge advantage at the local and geographical level. Experts believe that the strong management of the company, the trust of the SBI brand name and the bumper response from anchor investors make this IPO a safe and attractive option. For investors who want to strengthen their portfolio for the long term along with listing gains, this IPO, which opened from today, can prove to be a great opportunity.