SBI Funds Management opens Rs 9,813 crore IPO
State Bank of India and Amundi are selling a 10.2% stake in India's largest mutual fund manager, testing investor appetite for high-margin asset managers at premium valuations.
SBI Funds Management opened its initial public offering today, marking the largest listing for an Indian asset manager. The Rs 9,813 crore issue is entirely an offer for sale of 17.10 crore shares by parent State Bank of India and its partner Amundi. The company will not receive any proceeds from the sale.
The IPO will reduce the promoters' holding from 98.2% to 89.8%, leaving a public float of 10.2%. Shares are set to list on the BSE and NSE, with a retail lot priced at Rs 14,924 at the upper end of the price band. An 18% grey market premium indicates strong early demand.
As India's largest asset management company by quarterly average assets under management, SBI Funds Management oversees Rs 12.5 lakh crore. This gives it a 15.3% market share as of March 2026. The business is highly profitable, with consolidated net profit rising to Rs 3,067 crore in FY26 from Rs 2,540 crore the prior year. EBITDA margins expanded to 79.1%, pushing return on equity to 51.4%.
At the upper price band, the offering values the company at 38.1 times FY26 earnings and 33.6 times EV/EBITDA. Brokerages Nirmal Bang and Anand Rathi both recommend subscribing to the issue. Nirmal Bang noted the stock is priced at a discount to domestic peers ICICI Prudential AMC and HDFC AMC, despite SBI Funds' market leadership.
The fund house relies heavily on its sprawling distribution network and systematic investment plans. It operates through over 132,500 mutual fund distributors covering 98.2% of Indian postal codes. The firm managed 16.2 million live SIPs in FY26, generating monthly inflows of Rs 4,059 crore.
Revenue is directly tied to assets under management, exposing the firm to market volatility and investor redemptions. Brokerages also warned of rising competition from exchange-traded funds, direct equity platforms and fee pressure from distributors. The IPO's reception will serve as a key benchmark for valuations across India's rapidly growing but consolidating wealth management sector.
