At the upper end of the price band, one retail lot will cost Rs 14,924. The shares are proposed to be listed on BSE and NSE.
SBI Funds Management IPO GMP
The grey market premium (GMP) is around 18%, signaling decent listing expectations before the issue opens. GMP is not an official indicator and can change quickly, but it suggests that investor demand remains strong for the country’s largest mutual fund house.
SBI Funds Management IPO details
The IPO is entirely an offer for sale of 17.10 crore shares by State Bank of India and Amundi. Since there is no fresh issue, SBI Funds Management will not receive any proceeds from the IPO. The money will go to the selling shareholders. Anand Rathi said the issue size at the upper band is Rs 98,129 million, or about Rs 9,813 crore, with no fresh issue component.
After the issue, promoter and promoter group holding will fall to 89.8% from 98.2%, while public shareholding will rise to 10.2%, according to Anand Rathi.
Also Read: SBI Funds Management IPO set to open: GMP signals 16% listing gain; Check price band, key dates & details
Broker recommendations
Nirmal Bang has given a “Subscribe” rating to the IPO from a medium- to long-term perspective. It said SBI MF’s market leadership, distribution strength, healthy profitability and favourable industry outlook support the issue.
Anand Rathi has also recommended “Subscribe”. The brokerage said the IPO is fully priced, but SBI Funds Management’s leadership, asset-light model, SBI-Amundi parentage and retail investor base support the offer.
SBI Funds Management: India’s largest AMC
SBI Funds Management is the investment manager to SBI Mutual Fund. It is India’s largest AMC by mutual fund quarterly average assets under management, with QAAUM of Rs 12.5 lakh crore and a 15.3% market share as of March 2026.
The company is promoted by State Bank of India and Amundi. SBI gives it access to a large banking and distribution network, while Amundi brings global asset management experience. Nirmal Bang said SBI MF offers 128 mutual fund schemes across equity, debt, hybrid, ETFs, index funds and overseas funds, along with PMS, AIFs, SIFs and advisory mandates.It also has a strong retail base. Anand Rathi said SBI Funds Management had 17.95 million individual investors and 16.21 million live SIP accounts as of March 2026. Its total QAAUM, including PMS and other advisory mandates, stood at Rs 29.46 lakh crore.
SIP and distribution strength
SBI Funds Management’s biggest advantage is its reach. Nirmal Bang said the company has an omnichannel distribution network of over 132,500 mutual fund distributors. It is present across 98.2% of India’s PIN codes and has an industry-leading B-30 franchise.The company also has a large digital business. Nirmal Bang said SBI MF processed an average of 1.31 million transactions a month in FY26, with around 94.3% of transactions executed through digital channels. Its InvesTap app had 3.97 million registered users, 3.39 million active users and over 5.8 million downloads as of FY26.
SIP growth remains a key support for the company. Anand Rathi said SBI Funds Management had 16.2 million live SIPs in FY26, monthly SIP inflow of Rs 4,059 crore and SIP AUM of Rs 1.73 lakh crore.
SBI Funds Management Financial performance and valuation
SBI Funds Management has shown steady growth in recent years. Revenue from operations rose to Rs 4,389 crore in FY26 from Rs 3,598 crore in FY25 and Rs 2,691 crore in FY24. Consolidated PAT increased to Rs 3,067 crore in FY26 from Rs 2,540 crore in FY25 and Rs 2,073 crore in FY24.
Profitability remains strong. EBITDA margin improved to 79.1% in FY26 from 77.1% in FY25 and 73.7% in FY24. Return on equity stood at 51.4% in FY26.
At the upper price band, the IPO values the company at 38.1 times FY26 earnings and 33.6 times EV/EBITDA. Nirmal Bang said the issue is available at a discount to ICICI Prudential AMC and HDFC AMC on these metrics.
Key risks for investors
The main risk is market-linked earnings. SBI Funds Management earns fees on AUM, which can move with equity and debt markets. A sharp market fall, weaker fund performance or higher redemptions can affect revenue and profit.
Competition is also rising. Nirmal Bang flagged pressure from large AMCs, ETFs, ULIPs, direct equity and new digital investment platforms. Fee pressure and higher distributor payouts may also become important over time.
The book-running lead managers include Kotak Mahindra Capital, Axis Capital, BofA Securities India, HSBC Securities, ICICI Securities, Jefferies India, JM Financial, Motilal Oswal Investment Advisors and SBI Capital Markets. KFin Technologies is the registrar to the offer.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
