SBI Funds Management IPO vs Alpine Texworld IPO: Which issue should you subscribe? Check what latest GMP signals

Two Initial Public Offerings (IPOs)—SBI Funds Management and Alpine Texworld—opened for subscription on Monday, July 14, keeping the primary market in focus as investors track subscription trends and the latest grey market premium (GMP).

Here's a comparison of the two issues, including their latest GMP, issue details and key dates.

The SBI Funds Management IPO is commanding a GMP of ₹100. Based on the upper price band of ₹574, the estimated listing price stands at ₹674 per share, indicating a potential listing gain of 17.42% over the issue price.

The company has fixed the price band at ₹545-574 per equity share. The ₹11,692.91 crore public issue is entirely an Offer for Sale (OFS) comprising 20.37 crore equity shares, which means the company will not receive any proceeds from the issue. Instead, the entire amount raised will accrue to the selling shareholders—State Bank of India (SBI) and Amundi India Holding.

The offer consists of the sale of up to 17.09 crore equity shares by SBI and Amundi, aggregating up to ₹9,795 crore at the upper end of the price band. Under the offer, SBI will divest a 6.3% stake, while Amundi will sell a 3.7% stake. Following the issue, SBI's holding will decline from 61.76% to 55.46%, while Amundi's stake will reduce to 32.56%.

Ahead of the issue opening, the company raised ₹1,655 crore through a pre-IPO placement, allotting 2.88 crore equity shares to 30 marquee institutional investors, reflecting strong institutional demand.

For retail investors, the minimum application size is 26 equity shares, requiring an investment of ₹14,924 at the upper end of the price band.

The issue will remain open for subscription from July 14 to July 16. The basis of allotment is expected to be finalised on July 17, while the shares are tentatively scheduled to list on the BSE and NSE on July 21.

Meanwhile, the Alpine Texworld IPO is currently commanding a GMP of ₹5. Based on the upper price band of ₹105, the estimated listing price works out to ₹110 per share, indicating a potential premium of around 4.76% over the issue price.

The ₹126.25 crore issue is a book-built issue comprising an entirely fresh issue of 1.20 crore equity shares, with no OFS component. The company has fixed the price band at ₹100-105 per share.

Alpine Texworld plans to utilise the net proceeds to establish a new weaving unit at its proposed Manufacturing Unit 3 in Ahmedabad, Gujarat, expanding its grey fabric production capacity. The funds will also be used for the prepayment or repayment of certain outstanding borrowings and general corporate purposes.

For retail investors, the minimum application size is one lot of 142 shares, translating into a minimum investment of ₹14,910 at the upper end of the price band.

The basis of allotment is expected to be finalised on July 17, while the company's shares are tentatively scheduled to be listed on the BSE and NSE on July 21.

Swastika Investmart has recommended 'Subscribe for Long Term' for the SBI Funds Management IPO, citing the company's leadership as India's largest asset management company with ₹12.5 lakh crore in QAAUM, a strong SIP franchise and the extensive SBI-Amundi distribution network. The brokerage said the issue is valued at 38.1 times FY26 EPS, below the industry average of 41.6 times, while highlighting its 43.02% return on net worth (RoNW) and 81.56% EBITDA margin. However, it noted that the issue is a 100% OFS, with future earnings dependent on AUM growth and market performance.

For the Alpine Texworld IPO, Swastika assigned a 'Neutral' rating, citing a balanced risk-reward profile. It noted the company's improved FY26 financial performance, with RoE of 33.85%, RoCE of 17.56% and PAT margin rising to 6.34% from 3.63% in FY25. However, it believes sustaining margins may be difficult in the competitive textile industry, while the issue's valuation of 18.49 times FY26 earnings appears slightly expensive for a commoditised business. It added that although t...