SBI Funds Management IPO got only 0.68 times subscription on Day 1. The issue opened today and saw slow investor interest. You know, that is below the full mark already.
Day 1 Subscription Numbers of SBI Funds Management IPO
The IPO closed Day 1 at 68% of total offer size. Retail buyers booked 0.45 times their quota, say reports. Institutional buyers showed 0.91 times interest by evening.
So the overall figure stayed under one time. That means demand is weak right now. Actually, I feel the pricing may be a bit steep for many.
Here is a quick look at the break-up:
I personally tried this method...
- Retail portion: 0.45 times
- Non-institutional: 0.38 times
- Qualified institutions: 0.91 times
Let me explain with a simple example. Suppose 100 shares are on sale. Only 68 buyers showed up on the first day.
The company manages mutual fund assets under SBI brand. You can read more on SBI Funds Management Wikipedia for background.
What This Slow Start Means for Investors
A weak Day 1 often hints at cautious mood. However, things may pick up later. I think big institutions may fill gaps in the next two days.
The IPO will stay open for a few more sessions. So you still have time to watch. Do you plan to apply or wait for the trend?
Speaking from personal experience...
Market experts say subscription may cross one time soon. But retail heat looks low today. Check live updates on Reuters markets news for fresh data.
Strong demand usually shows on final days. This time, early signs are soft. Keep your eyes on the daily figure, friend.
The anchor book was done before the issue opened. That brought some steady money. Still, public response is the real test now.
So if you are new, wait and see. A 0.68 times start is not a rush signal. Slow and safe may win here.