SBI Funds opens ₹9,795 crore IPO as India's top AMC
India's largest asset manager is seeking a roughly ₹1.2 lakh crore valuation in a wholly secondary share sale that has already attracted cornerstone backing from major global and domestic institutions.
SBI Funds Management opened its ₹9,795-crore initial public offering on July 14, tapping capital markets as India's dominant asset manager. The offering, which closes on July 16, follows a pre-IPO placement of roughly ₹1,880 crore that reduced the original issue size from ₹11,693 crore.
The company secured ₹2,663 crore from anchor investors ahead of the public subscription. Global funds including GIC, BlackRock, Fidelity, and Norges Bank joined domestic institutions like LIC and HDFC Mutual Fund in buying shares at the upper price band of ₹574. The entire offering is a 100% offer-for-sale by parent State Bank of India and partner Amundi, meaning the asset manager will not receive any fresh capital.
SBI is selling a 6.3% stake, reducing its holding to 55.46%, while Amundi is divesting a 3.7% stake to leave it with 32.56%. At the top of the price range, SBI Funds Management is valued at roughly ₹1.2 lakh crore, or 38.1 times its fiscal 2026 earnings and 33.6 times EV/EBITDA.
This premium valuation is supported by market-leading scale and profitability. SBI Funds Management commanded a 15.3% market share with ₹12.51 lakh crore in quarterly average mutual fund assets under management at the end of March 2026. Active mutual fund assets grew at a 22% compound annual growth rate over FY24-FY26, while the firm maintained an EBITDA margin near 80% and a return on equity above 50%.
Brokerages have unanimously backed the issue. Nirmal Bang Securities and Swastika Investmart noted the stock is priced at a discount to listed peers like HDFC AMC, supported by an asset-light model and a vast distribution network. However, grey market premiums have cooled to ₹100—down from a recent peak of ₹140—indicating some short-term caution among retail participants.
Analysts warn that future earnings remain tied to market performance and asset growth rather than capital deployment. The company also faces potential regulatory risks regarding total expense ratios. Shares are scheduled to be allocated on July 17 and list on the BSE and NSE on July 21.
