SBI Funds Management’s R9,795-crore IPO opened for subscription on 14 July and closes on 16 July. The SBI Funds Management IPO has fixed a price band of ₹545-574 per equity share, with investors required to bid in multiples of 26 shares.
Ahead of the public issue, the SBI Funds Management IPO raised ₹2,663 crore from anchor investors, attracting strong participation from a diverse mix of leading global and domestic institutional investors.
According to a stock exchange filing, the company allotted 4,63,93,095 equity shares to 129 anchor investors at ₹574 per share, the upper end of the price band.
The anchor book included marquee global investors such as GIC, Abu Dhabi Investment Authority (ADIA), Capital World Investors, BlackRock, Fidelity Management & Research, Goldman Sachs Asset Management, and Norges Bank. Among domestic investors, Life Insurance Corporation of India (LIC), HDFC Mutual Fund, ICICI Prudential Mutual Fund, Nippon India Mutual Fund, and HDFC Life Insurance participated in the allocation.
Under the issue structure, the SBI Funds Management IPO has reserved up to 50% of the net offer for qualified institutional buyers (QIBs), at least 15% for non-institutional investors (NIIs), and at least 35% for retail investors. Eligible employees will receive a discount of ₹54 per equity share.
As per the tentative timeline, the SBI Funds Management IPO allotment is likely to be finalised on 17 July. Refunds are expected to be processed on 20 July, while successful applicants are likely to receive shares in their demat accounts on the same day. The SBI Funds Management share price is scheduled to list on the BSE and NSE on 21 July.
Established in 1987, SBI Funds Management is India’s largest asset management company (AMC) by quarterly average assets under management (QAAUM). As of 31 March 2026, it managed mutual fund QAAUM of ₹12.51 lakh crore, representing a 15.3% share of the mutual fund industry’s assets.
Including assets managed under its portfolio management services (PMS) and alternative investment fund (AIF) mandates, the company’s total QAAUM stood at ₹29.46 lakh crore at the end of FY26.
SBI Funds Management IPO GMP today
SBI Funds IPO GMP today is +92. Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of the SBI Funds Management share was ₹666 apiece, which is 16.03% higher than the IPO price of ₹574.
According to grey market trends observed over the past 11 sessions, the current GMP of ₹92 suggests a negative outlook. During this timeframe, the GMP fluctuated between ₹75.00 and ₹140, as noted by experts.
SBI Funds Management IPO subscription status
SBI Funds IPO subscription status was 2.77x on day 2. The retail portion is subscribed 1.61x, and NII portion has been booked 6.58x, QIBs portion received 1.50x bids. The employee portion was subscribed 2.27x, and the shareholder portion was booked 3.98x.
SBI Funds Management IPO subscription status was 68% on day 1. The retail portion is subscribed 62%, and NII portion has been booked 1.39x, QIBs portion received 8% bids. The employee portion was subscribed 1.02x, and the shareholder portion was booked 1.04x.
SBI Funds Management IPO review
Swastika Investmart: Subscribe for Long Term
Swastika Investmart has assigned a “Subscribe for Long Term” rating to the SBI Funds Management IPO. The brokerage cited 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. It noted that the IPO is priced at 38.1x FY26 EPS, below the industry average of 41.6x, making valuations reasonable.
Swastika also highlighted the company’s robust profitability, with a 43.02% return on net worth (RoNW) and an 81.56% EBITDA margin, while cautioning that the issue is a 100% offer for sale (OFS) with no fresh capital infusion, making future earnings dependent on AUM growth and market performance.
Nirmal Bang Securities: Subscribe
Nirmal Bang Securities has recommended “Subscribe” from a medium- to long-term perspective. The brokerage believes SBI Mutual Fund is attractively valued compared with listed peers, backed by its ₹12.5 lakh crore QAAUM, 15.3% market share, diversified product portfolio and strong retail and institutional franchise.
It highlighted that active mutual fund QAAUM grew at a 22% CAGR during FY24-FY26, while the company maintained a 20% cost-to-income ratio, 79% EBITDA margin and 51% return on equity (ROE), outperforming peers such as HDFC AMC and Nippon Life AMC. At 33.6x EV/EBITDA and 38.1x P/E, the IPO is available at a discount to HDFC AMC and ICICI Prudential AMC, the brokerage said.
Anand Rathi: Subscribe
Anand Rathi has assigned a “Subscribe” rating to the issue. The brokerage said that at the upper price band, the IPO is valued at 38.1x FY26 earnings and 33.6x EV/EBITDA, implying a post-issue market capitalisation of around ₹1.17 lakh crore. While it believes the issue is fully priced, Anand Rathi said the company’s strong business fundamentals justify a subscription.
Arihant Capital Markets: Subscribe for Long Term
Arihant Capital Markets has recommended “Subscribe for Long Term”, citing structural growth drivers such as rising financialisation, increasing SIP penetration and SBI’s extensive distribution network, which are expected to support sustained AUM growth and annuity-like fee income.
The brokerage noted that earnings remain exposed to market volatility and regulatory changes, particularly around total expense ratios (TER) and distribution norms. However, it believes the IPO valuation of 38.1x FY26 EPS and 19.6x price-to-book is in line with or at a discount to larger listed peers, supported by the company’s dominant market position and superior return ratios.
BP Equities: Subscribe
BP Equities has given the IPO a “Subscribe” rating. The brokerage said the company’s relatively lower profitability compared with some peers is primarily a result of its product mix rather than franchise quality.
It expects management’s strategy of increasing the share of higher-yield active equity, specialised investment products and alternative assets to improve fee realisations, profitability and return ratios over the medium term. Given SBI Funds Management’s market leadership, unmatched distribution franchise and valuation below the listed peer average, BP Equities sees scope for a valuation re-rating.
Kantilal Chhaganlal Securities: Apply for Listing Gains and Long Term
Kantilal Chhaganlal Securities has recommended investors apply for listing gains as well as for the long term. The brokerage highlighted the company’s 43.02% return on equity (ROE) in FY26, strong parentage, dominant AMC franchise and favourable industry outlook.
It expects the mutual fund industry to grow at a 16-17% CAGR, while industry-wide SIP AUM is projected to expand at a 23-26% CAGR during FY26-FY29. Valued at 38.06x FY26 earnings, the brokerage believes SBI Funds Management is fairly valued relative to listed peers.
Aditya Birla Capital: Subscribe
Aditya Birla Capital has recommended a “Subscribe” rating on the SBI Funds Management IPO, citing the company’s market leadership, strong distribution network, robust profitability, and multiple long-term growth drivers.
The brokerage believes SBI Funds Management is well positioned to benefit from the mutual fund industry’s expected 16-17% AUM CAGR during FY26-FY29 and 23-26% CAGR in SIP assets over the same period. It also highlighted the company’s strong execution, with revenue CAGR of 27.7%, PAT CAGR of 21.7% during FY24-FY26, and 43% ROE in FY26.
At the upper end of the price band of ₹574 per share, Aditya Birla Capital said the stock trades at around 38.1x FY26 earnings, which it considers reasonable relative to listed peers, making the IPO an attractive long-term play on India’s growing wealth management and financialisation story.
SBI Funds Management IPO details
The SBI Funds Management IPO comprises only an offer for sale (OFS) of up to 17.09 crore equity shares by existing shareholders State Bank of India (SBI) and Amundi, with the issue size aggregating up to ₹9,795 crore at the upper end of the price band.
As part of the OFS, SBI will divest a 6.3% stake, while Amundi will sell 3.7% of its shareholding in the asset management company.
Post-listing, SBI’s ownership in SBI Funds Management will decrease from 61.76% to 55.46%, while Amundi’s stake will decline to 32.56%.
The IPO was originally planned to raise ₹11,693 crore, but the issue size was later revised downward after the company mobilised around ₹1,880 crore through a pre-IPO placement.
At the upper end of the ₹545-574 price band, SBI Funds Management is valued at an implied market capitalisation of around ₹1.2 lakh crore.
The issue is being managed by a consortium of book-running lead managers, including Kotak Mahindra Capital Company, Axis Capital, BofA Securities India, HSBC Securities and Capital Markets (India), ICICI Securities, Jefferies India, JM Financial, Motilal Oswal Investment Advisors, and SBI Capital Markets.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
