IPO GMP Check: SBI Funds Management IPO vs Alpine Texworld IPO - What grey market signals ahead of listings?

Two Initial Public Offerings (IPOs)—SBI Funds Management and Alpine Texworld — ended their final day of bidding on July 16 after opening on July 14. Following strong demand for the public issues, the IPOs finalised share allotment yesterday, July 17.

Ahead of listing on Tuesday, July 21, let's track what the latest grey market premium (GMP) trends suggest for these 2 issues. Which one is likely to perform better at listing?

Here's a comparison of the two issues, including their latest GMP, final subscription status, and issue details.

The SBI Funds Management IPO is commanding a GMP of ₹91. Based on the upper price band of ₹574, the estimated listing price stands at ₹6 per share, indicating a potential listing gain of 17.42% over the issue price.

SBI Funds Management's IPO witnessed robust investor demand, with the issue being subscribed 41.66 times by the close of bidding, according to NSE data. The Qualified Institutional Buyers (QIB) portion led the response, attracting subscriptions of 140.11 times, while the Non-Institutional Investors (NII) category was subscribed 22.51 times. The Retail Individual Investors (RII) segment was booked 3.60 times.

The asset management company has priced its IPO in the range of ₹545-574 per equity share. The ₹11,692.91 crore public issue is a 100% Offer for Sale (OFS) of 20.37 crore equity shares, implying that the company will not receive any proceeds from the offering. The entire amount raised will go to the selling shareholders—State Bank of India (SBI) and Amundi India Holding.

As part of the OFS, SBI and Amundi India Holding will together offload up to 17.09 crore equity shares, aggregating up to ₹9,795 crore at the upper end of the price band. Following the transaction, SBI will reduce its stake by 6.3%, while Amundi will pare its holding by 3.7%. After the IPO, SBI's shareholding will decline from 61.76% to 55.46%, while Amundi's stake will stand at 32.56%.

Ahead of the public issue, SBI Funds Management mobilised ₹1,655 crore through a pre-IPO placement, allotting 2.88 crore equity shares to 30 marquee institutional investors, signalling strong institutional interest before the issue opened.

Meanwhile, the Alpine Texworld IPO is currently commanding a GMP of ₹1. Based on the upper price band of ₹105, the estimated listing price works out to ₹106 per share, indicating a potential premium of around 1% over the issue price.

Alpine Texworld's IPO attracted stronger investor interest on the final day of bidding, with the public issue being subscribed 1.40 times overall.

Demand was led by Retail Investors, whose reserved portion was subscribed 1.53 times. Meanwhile, both the QIBs and NIIs categories were booked 1.09 times each.

The ₹126.25 crore IPO is a 100% fresh issue of 1.20 crore equity shares and does not include an OFS. The company has set the price band at ₹100-105 per equity share.

Alpine Texworld intends to utilise the net proceeds to set up a new weaving unit at its proposed Manufacturing Unit 3 in Ahmedabad, Gujarat, to enhance its grey fabric production capacity. The company also plans to use the funds for the prepayment or repayment of certain outstanding borrowings, with the remaining amount earmarked for general corporate purposes.

Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.

Pranati Deva is a seasoned financial journalist with over a decade of experience in high-pressure newsroom environments, currently working as a Senior Sub Editor at LiveMint. Over the years, she has developed a reputation for sharp editorial judgement, a strong grasp of market dynamics, and the ability to translate complex financial developments into clear, engaging stories for a wide audience. <br><br> Her core areas of coverage include stock markets, leading listed companies, currencies, and commodities, with a particular strength in fast-paced, real-time market reporting. She is...