SBI Funds Management IPO: Should you subscribe? Check price band, issue size, GMP & more
SBI Funds Management is selling its shares in the price band of Rs 545-574 apiece, applied for a minimum of 26 shares and its multiples to raise Rs 9,813 crore between July 14-16.
- Jul 14, 2026,
- Updated Jul 14, 2026 9:13 AM IST
The initial public offering of SBI Funds Management (SBI MF) shall open for bidding on Tuesday, July 14 as the mutual fund player shall be offering its shares in the range of Rs 545-574 apiece. Investors can apply for a minimum of 26 equity shares and its multiples thereafter. The issue will close for subscription on Thursday, July 16.
The IPO of SBI Funds Management was entirely an offer-for-sale (OFS) of up to 17,09,56,631 equity shares by its parent State Bank of India and Amundi, worth Rs 9,813 crore. The company will not receive any proceeds from the issue. Last heard, it was commanding a grey market premium (GMP) of Rs 95-100 apeice, suggesting a listing pop of 17-18 per cent for the investors.
Established in 1992, SBI Funds Management is the largest asset management company (AMC) in India based on assets under management (AUM). It is a joint venture between State Bank of India and Amundi. It offers a wide range of investment products such as equity funds, debt funds, hybrid funds, ETFs, and portfolio management services (PMS).
SBI Funds Management raised a total of 2,662.96 crore from over 100 anchor investors as it allocated 4,63,93,095 shares at Rs 574 apiece. Its anchor book included names like LIC, HDFC Mutual Fund (MF), ICICI Prudential MF, Government of Singapore, Kotak MF, NAM India MF, Blackrock, Nomura India, Fidelity, Goldman Sach, Axis MF, Tata MF, UTI MF, Abakkus, Malabar Funds and more.
SBI Funds Management reported a net profit at Rs 3,067 crore with a revenue of Rs 4,976.11 crore for the financial year ended on March 31, 2026. The company clocked a net profit at Rs 2,540.15 crore with a revenue of Rs 4,236.15 crore for the fiscal year 2024-25. At the current valuations, the company is commanding a total market capitalization close to Rs 1.17 lakh crore.
Even before its IPO, SBI Funds Management raised a total of Rs 1,880 crore in pre-IPO funding as it allocated 32,752,608 equity shares at Rs 574 apeice. Key investors like WhiteOak Capital, 3P India Equity Fund, Bennett Coleman, Tata AIG General Insurance, Dymon Asia Multi-Strategy Investment (Singapore) participated in the round. This fundraising resulted in trimming the IPO size.
SBI Funds Management has reserved 50 per cent of the net issue for the qualified institutional bidders (QIBs), while non institutional investors (NIIs) will have 15 per cent of the allocation. Retail investors will get 35 per cent of the net offer. Eligible employees of SBI and SBI MF, along with eligible shareholders of SBI also have reservation in this IPO.
Kotak Mahindra Capital, Axis Capital, BofA Securities, HSBC Securities & Capital Markets, ICICI Securities, Jefferies India, JM Financial, Motilal Oswal Investment Advisors and SBI Capital Markets are the lead managers and Kfin Technologies is the registrar of the issue. Shares of the company shall be listed on both BSE and NSE on July 21. Here's what host of brokerages say on the IPO of SBI MF:
Anand Rathi Share & Stock Brokers Rating: Subscribe for long-term SBI Funds Management is India's largest asset management company by mutual fund quarterly average assets under management (QAAUM), with a 15.3 per cent market share as of March 31, 2026. Backed by its joint promoters, SBI and Amundi Asset Management, it benefits from SBI's extensive domestic distribution network and Amundi's global asset management expertise, said Anand Rathi.
"It operates an asset-light, fee-based business model through the management of mutual funds, portfolio management services (PMS), alternative investment funds (AIFs), Specialized Investment Funds (SIFs) and advisory mandates across equity, debt, hybrid, passive and overseas investment products. We believe that the IPO is fully priced and recommend a 'subscribe' rating," it added.
Chola Securities Rating: Subscribe SBI Funds Management owns a dominant position within the Indian asset management industry. It has consistently maintained its position as the largest AMC in India since March 2021, supported by a diversified product portfolio, an extensive distribution network, and strong investor trust. It benefits from the strong SBI franchise, said Chola Securities in its IPO note.
"Going forward, favourable industry tailwinds, including increasing financialization of household savings, rising SIP penetration, growing retail participation, and expanding mutual fund adoption, are expected to support long-term growth in assets under management and earnings. The IPO is fairly valued," it said with 'subscribe' rating for listing gains.
Nirmal Bang Securities Rating: Subscribe SBI Mutual Fund is attractively valued relative to listed peers. It commands the highest MF QAAUM of Rs 12.5 lakh crore with a 15.3 per cent market share, supported by a diversified product portfolio and a strong retail and institutional franchise. SBI MF reported a healthy ROE of 51 per cent, significantly higher than HDFC AMC and Nippon Life AMC (31-35 per cent), said Nirmal Bang Securities.
"It continues to outperform on profitability and operating efficiency with a cost-to-income ratio of 20 per cent and a strong Ebitda margin of 79 per cent. the issue is available at a discount to IPRU AMC & HDFC AMC. Given its market leadership, strong distribution network, healthy profitability and favorable industry outlook," it said with a 'subscribe' rating to the issue from a medium-to-long-term view.
Arihant Capital Markets Rating: Subscribe for long-term SBI Funds Management enters FY26 as India's largest asset manager on a capital-light, fee-based model. Structural drivers such as rising financialisation, deepening SIP penetration and SBI-backed distribution support steady AUM accretion and annuity-like fee income, though earnings stay exposed to market volatility and TER/distribution regulation, said Arihant Capital Markets.
"The issue is valued at a P/E of 38.1 times on FY26 EPS of Rs 15.06 (P/B of 19.6 times), broadly in line with or at a discount to larger listed peers, supported by its dominant franchise and superior return ratios. We recommend a 'subscribe for long term' rating," it added.
Swastika Investmart Rating: Subscribe SBI MF is India's largest AMC with Rs 12.5 lakh crore QAAUM, a strong SIP franchise, and a robust SBI–Amundi distribution network. The issue is valued at 38.12 times FY26 EPS, below the industry average of 41.64 times, offering reasonable valuations. Strong RoNW of 43 per cent with 82 per cent EBITDA margin reflects a highly profitable asset-light business, said Swastika Investmart.
"A 100 per cent offer for sale (OFS) with no fresh capital infusion; earnings remain linked to AUM growth and market performance. Subscribe for long-term investors on scale, margins, and relative valuation comfort," it added.
Kantilal Chhaganlal Securities Rating: Subscribe Considering AMC size, strong parentage, positive industry outlook, the MF industry in India is expected to grow at a CAGR of 16-17 per cent coupled with industry-wide SIP AUM growth at a CAGR of 23-26 per cent between the forecast period of FY26- 29, SBI Funds valued at 38 times FY26PE which is fairly valued compare to peers," said KC Securities with a 'subscribe' rating for the IPO.
Systematix Institutional Equities Rating: Subscribe SBI Funds Management has established a dominant position across retail, institutional and alternative asset management segments, supported by one of the broadest distribution franchises in the country, said Systematix Institutional Equities. "It has emerged as a key beneficiary of the ongoing shift in household savings towards financial assets, aided by its deep penetration across the metro as well as B-30 markets, extensive customer reach and strong brand franchise. With robust growth prospects, we recommend 'subscribe' to the offer," it added.
BP Equities Rating: Subscribe As the product mix evolves and the profitability gap with peers narrows, SBI AMC offers meaningful scope for a valuation re-rating, said BP Equities. "Considering its market leadership, unmatched distribution franchise and valuation below the listed peer average, we assign a 'subscribe' rating to the issue," it added.
SMIFS Rating: Subscribe The implied market capitalization is reported at roughly Rs 1.17 lakh crore to Rs 1.20 lakh crore. This is a premium valuation in absolute terms, but not unreasonable for a market-leading, high-ROE, cash-generative AMC if earnings growth remains durable, said SMIFS.
"It deserves a scarcity and scale premium, but a meaningful discount may be warranted if investors believe its lower-yield PMS/passive mix and regulatory fee pressure will constrain medium-term earnings growth." it added with a 'subscribe' rating.
Ventura Securities Rating: Subscribe SBI Funds Management offers a diversified product portfolio across equity, debt, ETFs, PMS, AIFs and other investment solutions, supported by a vast distribution network and a strong SIP franchise. Its partnership with Amundi enhances global investment expertise, technology and product innovation. SBI AMC's market leadership, recurring fee-based income and extensive retail reach remain its key strengths, said Ventura with a 'subscribe' rating.
Beacon Investment Advisors Rating: Subscribe Including portfolio management services and other advisory mandates, SBI MF's total QAAUM stood at 29.46 lakh crore. It is also India's largest passive asset manager, holding a 27.9 per cent market share in ETFs and index funds SBI MF's total QAAUM grew at a CAGR of 14.2 per cent, while mutual fund QAAUM increased at a CAGR of 17 per cent between March 2024-2026, said Beacon.
"It benefits from the combined strengths of SBI and Amundi, supported by a distribution network of over 132,000 MF distributors, 16.21 million live SIP accounts, and 18 million investors. Strong penetration in tier2 and tier-3 cities, along with digital platforms such as YONO and InvesTap, positions SBI MF to benefit from financialization, SIP adoption, and growing participation in passive investing," it added with a subscribe rating.
The initial public offering of SBI Funds Management (SBI MF) shall open for bidding on Tuesday, July 14 as the mutual fund player shall be offering its shares in the range of Rs 545-574 apiece. Investors can apply for a minimum of 26 equity shares and its multiples thereafter. The issue will close for subscription on Thursday, July 16.
The IPO of SBI Funds Management was entirely an offer-for-sale (OFS) of up to 17,09,56,631 equity shares by its parent State Bank of India and Amundi, worth Rs 9,813 crore. The company will not receive any proceeds from the issue. Last heard, it was commanding a grey market premium (GMP) of Rs 95-100 apeice, suggesting a listing pop of 17-18 per cent for the investors.
Established in 1992, SBI Funds Management is the largest asset management company (AMC) in India based on assets under management (AUM). It is a joint venture between State Bank of India and Amundi. It offers a wide range of investment products such as equity funds, debt funds, hybrid funds, ETFs, and portfolio management services (PMS).
SBI Funds Management raised a total of 2,662.96 crore from over 100 anchor investors as it allocated 4,63,93,095 shares at Rs 574 apiece. Its anchor book included names like LIC, HDFC Mutual Fund (MF), ICICI Prudential MF, Government of Singapore, Kotak MF, NAM India MF, Blackrock, Nomura India, Fidelity, Goldman Sach, Axis MF, Tata MF, UTI MF, Abakkus, Malabar Funds and more.
SBI Funds Management reported a net profit at Rs 3,067 crore with a revenue of Rs 4,976.11 crore for the financial year ended on March 31, 2026. The company clocked a net profit at Rs 2,540.15 crore with a revenue of Rs 4,236.15 crore for the fiscal year 2024-25. At the current valuations, the company is commanding a total market capitalization close to Rs 1.17 lakh crore.
Even before its IPO, SBI Funds Management raised a total of Rs 1,880 crore in pre-IPO funding as it allocated 32,752,608 equity shares at Rs 574 apeice. Key investors like WhiteOak Capital, 3P India Equity Fund, Bennett Coleman, Tata AIG General Insurance, Dymon Asia Multi-Strategy Investment (Singapore) participated in the round. This fundraising resulted in trimming the IPO size.
SBI Funds Management has reserved 50 per cent of the net issue for the qualified institutional bidders (QIBs), while non institutional investors (NIIs) will have 15 per cent of the allocation. Retail investors will get 35 per cent of the net offer. Eligible employees of SBI and SBI MF, along with eligible shareholders of SBI also have reservation in this IPO.
Kotak Mahindra Capital, Axis Capital, BofA Securities, HSBC Securities & Capital Markets, ICICI Securities, Jefferies India, JM Financial, Motilal Oswal Investment Advisors and SBI Capital Markets are the lead managers and Kfin Technologies is the registrar of the issue. Shares of the company shall be listed on both BSE and NSE on July 21. Here's what host of brokerages say on the IPO of SBI MF:
Anand Rathi Share & Stock Brokers Rating: Subscribe for long-term SBI Funds Management is India's largest asset management company by mutual fund quarterly average assets under management (QAAUM), with a 15.3 per cent market share as of March 31, 2026. Backed by its joint promoters, SBI and Amundi Asset Management, it benefits from SBI's extensive domestic distribution network and Amundi's global asset management expertise, said Anand Rathi.
"It operates an asset-light, fee-based business model through the management of mutual funds, portfolio management services (PMS), alternative investment funds (AIFs), Specialized Investment Funds (SIFs) and advisory mandates across equity, debt, hybrid, passive and overseas investment products. We believe that the IPO is fully priced and recommend a 'subscribe' rating," it added.
Chola Securities Rating: Subscribe SBI Funds Management owns a dominant position within the Indian asset management industry. It has consistently maintained its position as the largest AMC in India since March 2021, supported by a diversified product portfolio, an extensive distribution network, and strong investor trust. It benefits from the strong SBI franchise, said Chola Securities in its IPO note.
"Going forward, favourable industry tailwinds, including increasing financialization of household savings, rising SIP penetration, growing retail participation, and expanding mutual fund adoption, are expected to support long-term growth in assets under management and earnings. The IPO is fairly valued," it said with 'subscribe' rating for listing gains.
Nirmal Bang Securities Rating: Subscribe SBI Mutual Fund is attractively valued relative to listed peers. It commands the highest MF QAAUM of Rs 12.5 lakh crore with a 15.3 per cent market share, supported by a diversified product portfolio and a strong retail and institutional franchise. SBI MF reported a healthy ROE of 51 per cent, significantly higher than HDFC AMC and Nippon Life AMC (31-35 per cent), said Nirmal Bang Securities.
"It continues to outperform on profitability and operating efficiency with a cost-to-income ratio of 20 per cent and a strong Ebitda margin of 79 per cent. the issue is available at a discount to IPRU AMC & HDFC AMC. Given its market leadership, strong distribution network, healthy profitability and favorable industry outlook," it said with a 'subscribe' rating to the issue from a medium-to-long-term view.
Arihant Capital Markets Rating: Subscribe for long-term SBI Funds Management enters FY26 as India's largest asset manager on a capital-light, fee-based model. Structural drivers such as rising financialisation, deepening SIP penetration and SBI-backed distribution support steady AUM accretion and annuity-like fee income, though earnings stay exposed to market volatility and TER/distribution regulation, said Arihant Capital Markets.
"The issue is valued at a P/E of 38.1 times on FY26 EPS of Rs 15.06 (P/B of 19.6 times), broadly in line with or at a discount to larger listed peers, supported by its dominant franchise and superior return ratios. We recommend a 'subscribe for long term' rating," it added.
Swastika Investmart Rating: Subscribe SBI MF is India's largest AMC with Rs 12.5 lakh crore QAAUM, a strong SIP franchise, and a robust SBI–Amundi distribution network. The issue is valued at 38.12 times FY26 EPS, below the industry average of 41.64 times, offering reasonable valuations. Strong RoNW of 43 per cent with 82 per cent EBITDA margin reflects a highly profitable asset-light business, said Swastika Investmart.
"A 100 per cent offer for sale (OFS) with no fresh capital infusion; earnings remain linked to AUM growth and market performance. Subscribe for long-term investors on scale, margins, and relative valuation comfort," it added.
Kantilal Chhaganlal Securities Rating: Subscribe Considering AMC size, strong parentage, positive industry outlook, the MF industry in India is expected to grow at a CAGR of 16-17 per cent coupled with industry-wide SIP AUM growth at a CAGR of 23-26 per cent between the forecast period of FY26- 29, SBI Funds valued at 38 times FY26PE which is fairly valued compare to peers," said KC Securities with a 'subscribe' rating for the IPO.
Systematix Institutional Equities Rating: Subscribe SBI Funds Management has established a dominant position across retail, institutional and alternative asset management segments, supported by one of the broadest distribution franchises in the country, said Systematix Institutional Equities. "It has emerged as a key beneficiary of the ongoing shift in household savings towards financial assets, aided by its deep penetration across the metro as well as B-30 markets, extensive customer reach and strong brand franchise. With robust growth prospects, we recommend 'subscribe' to the offer," it added.
BP Equities Rating: Subscribe As the product mix evolves and the profitability gap with peers narrows, SBI AMC offers meaningful scope for a valuation re-rating, said BP Equities. "Considering its market leadership, unmatched distribution franchise and valuation below the listed peer average, we assign a 'subscribe' rating to the issue," it added.
SMIFS Rating: Subscribe The implied market capitalization is reported at roughly Rs 1.17 lakh crore to Rs 1.20 lakh crore. This is a premium valuation in absolute terms, but not unreasonable for a market-leading, high-ROE, cash-generative AMC if earnings growth remains durable, said SMIFS.
"It deserves a scarcity and scale premium, but a meaningful discount may be warranted if investors believe its lower-yield PMS/passive mix and regulatory fee pressure will constrain medium-term earnings growth." it added with a 'subscribe' rating.
Ventura Securities Rating: Subscribe SBI Funds Management offers a diversified product portfolio across equity, debt, ETFs, PMS, AIFs and other investment solutions, supported by a vast distribution network and a strong SIP franchise. Its partnership with Amundi enhances global investment expertise, technology and product innovation. SBI AMC's market leadership, recurring fee-based income and extensive retail reach remain its key strengths, said Ventura with a 'subscribe' rating.
Beacon Investment Advisors Rating: Subscribe Including portfolio management services and other advisory mandates, SBI MF's total QAAUM stood at 29.46 lakh crore. It is also India's largest passive asset manager, holding a 27.9 per cent market share in ETFs and index funds SBI MF's total QAAUM grew at a CAGR of 14.2 per cent, while mutual fund QAAUM increased at a CAGR of 17 per cent between March 2024-2026, said Beacon.
"It benefits from the combined strengths of SBI and Amundi, supported by a distribution network of over 132,000 MF distributors, 16.21 million live SIP accounts, and 18 million investors. Strong penetration in tier2 and tier-3 cities, along with digital platforms such as YONO and InvesTap, positions SBI MF to benefit from financialization, SIP adoption, and growing participation in passive investing," it added with a subscribe rating.