The company has reduced the size of the IPO from the originally planned ₹11,693 crore after raising nearly ₹1,655 crore through a pre-IPO placement with 30 investors.
The IPO is a pure Offer for Sale (OFS) by State Bank of India (SBI) and Amundi India Holding, meaning SBI Funds Management will not receive any proceeds from the issue.
Should you subscribe?
Brokerages have largely maintained a positive stance on the IPO, citing the company’s market leadership, strong profitability and reasonable valuation.
Anand Rathi has assigned a ‘Subscribe’ rating despite describing the issue as fully priced. At the upper end of the price band, the IPO is valued at a price-to-earnings (P/E) multiple of 38.1 times.
The brokerage highlighted SBI Funds Management’s leadership position with a 15.3% share of the mutual fund industry’s quarterly average assets under management (QAAUM) as of March 2026. It also said the company’s asset-light, fee-based business model, which spans mutual funds, portfolio management services (PMS), alternative investment funds (AIFs), specialised investment funds (SIFs) and advisory mandates.
Swastika Investmart has also recommended subscribing to the issue for the long term, citing the company’s scale, healthy margins and attractive relative valuation.
According to the brokerage, SBI Funds Management’s valuation of 38.12 times FY26 earnings is below the listed AMC industry average of 41.64 times. It also highlighted the company’s 43.02% return on net worth (RoNW) and 81.56% EBITDA margin, reflecting the strength of its asset-light business model.
However, it said that since the IPO is entirely an OFS, future earnings growth will largely depend on assets under management (AUM) growth and market performance.
Arihant Capital has also assigned a ‘Subscribe for Long Term’ rating. The brokerage believes the IPO is reasonably valued compared to listed peers, supported by the company’s dominant franchise, healthy profitability and superior return ratios.
Issue details
The IPO has been priced in the range of ₹545-574 per share, with a face value of ₹1 each. Investors can apply for a minimum of 26 shares, requiring an investment of ₹14,924 at the upper end of the price band.
Ahead of the issue opening, the stock was commanding a grey market premium (GMP) of around ₹99 per share, according to market participants, implying a potential listing premium of about 17.25% over the upper end of the price band.
However, investors should note that the grey market premium is an unofficial indicator and can change significantly before listing.
Pre-IPO placement
Before launching the IPO, SBI Funds Management raised approximately ₹1,655 crore through a pre-IPO placement at ₹574 per share, the upper end of the IPO price band.
As part of the transaction, SBI sold 2.88 crore shares, representing 1.42% of SBI Funds Management’s pre-IPO equity capital.
Among the investors, PI Opportunities Fund-II and investor Akash Bhanshali each invested around ₹200 crore, while 3P India Equity Fund I invested nearly ₹150 crore. Other participants included Malabar India Fund, Tata AIG General Insurance, Go Digit General Insurance, Anand Rathi Global Finance, Clarus Capital I, Carnelian Bharat Amritkaal Fund, Bennett Coleman & Co. Ltd., and several institutional and family office investors.
Since the issue remains a pure OFS, the proceeds from the pre-IPO placement and the IPO will go entirely to the selling shareholders rather than the company. The participation of marquee investors at the upper end of the price band is seen as a positive signal for demand and valuation.
Reservation and listing timeline
The IPO allocates 50% of the issue to Qualified Institutional Buyers (QIBs), 35% to retail investors, 5% to small HNIs and 10% to big HNIs.
The basis of allotment is expected to be finalised on July 17, while the shares are scheduled to list on the BSE and NSE on July 21.
About the company
SBI Funds Management is India’s largest mutual fund house, managing ₹12.5 lakh crore in mutual fund assets with a 15.3% market share. The company is a joint venture between State Bank of India and Amundi, Europe’s largest asset manager.
For FY26, the company reported total income of ₹4,976 crore, up 17% year-on-year, while net profit increased 21% to ₹3,067 crore. Its return on net worth stood at 43.02%.
The listing will mark the third IPO by an SBI Group company, following the successful public offerings of SBI Life Insurance and SBI Cards & Payment Services.
