IPO News: Good News! The IPO of SBI Funds Management, one of the largest asset management companies in the country, has opened for investors from today i.e. Tuesday, July 14. This is one of the biggest IPOs of this year. If you are thinking of investing in it, then first of all check its price, issue size, gray market premium and brokerage carefully.

What is the issue size?
The IPO of SBI Funds Management is worth around Rs 9,813 crore. This is completely an offer for sale, that is, the company is not issuing any new shares, rather the existing shareholders are selling their stake. In such a situation, the money received from IPO will not go to the company.

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How much money will have to be invested?
The company has fixed the price band of the IPO at Rs 545 to Rs 574 per share. There are 26 shares in one lot. According to the upper price band, retail investors will have to invest at least Rs 14,924. Let us tell you that this issue will be open from 14th July to 16th July.

What does GMP say?
The gray market premium of SBI Funds Management is running around Rs 100 on the day of opening of IPO. If this trend continues then the listing of the share may be around Rs 674. However, there is no guarantee of gray market premium i.e. GMP.

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What is the opinion of brokerage?
Most of the brokerage houses have advised to subscribe to this IPO from a long term perspective. He believes that SBI Funds Management is the largest asset management company in the country, which has a strong brand, large distribution network and a continuously growing mutual fund business. Apart from this, the valuation of the company is also considered good compared to other competition.

Should you invest money?
If you want to invest for a long time and in the fast growing mutual fund sector of India, then this IPO is best for you. However, since this is an offer for sale issue and the company will not get new capital from it, therefore, be sure to check your risks before investing.

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