SBI Funds listing today: Brokerages initiate coverage with upto 30%; check target prices, key triggers
SBI Funds Management debuts on Dalal Street today. Emkay and Equirus initiate coverage, highlighting strong distribution, AUM growth and up to 30% upside potential.
- Jul 21, 2026,
- Updated Jul 21, 2026 9:25 AM IST
Even before making its stock market debut on Tuesday, July 21, shares of SBI Funds Management (SBI Funds) has managed to draw attention from select brokerage firms, which have initiated coverage on the listing-bound candidate, citing up to 30 per cent upside potential in the company on the back of its strong networks and leadership in the markets.
Emkay's positive view rests on three pillars SBI’s brand and distribution, coupled with significant under-penetration of SBI MF within the SBI Bank channel; the sustained shift in asset mix toward higher-yielding assets such as equity and alternate investments may support revenue yields; and economies-of-scale-led operating leverage is expected to drive 17 per cent EBITDA CAGR over FY26-29E.
"As the savings and investment needs of Indians evolve, the middle class is increasingly embracing mutual funds as its core investment vehicle, and SBI AMC has all the ingredients to become 'the asset manager to every Indian,' just as its parent has become 'the banker to every Indian.' We initiate coverage on SBI AMC with BUY and target price of Rs 750," it added.
To recall, the initial public offering of SBI Funds Management was open for subscription between July 14-16 which was sold for Rs 545-574 apeice, with a lot size of Rs 26 equity shares. The company raised a total of Rs 9,813 crore from its maiden offer, which was entirely an offer-for-sale (OFS) of up to 17,09,56,631 equity shares from its parent State Bank of India (SBI) and Amundi.
SBI Funds is India's largest AMC, with Rs 12.6 lakh crore of MF QAAUM and a 15.1 per cent market share, spanning leadership across active and passive strategies. It is well-poised to capitalise on India's financialization opportunity, its equity QAAUM grew at 33 per cent CAGR over FY21-June 2026, with market share rising to 12.7 per cent from 10.2 per cent, said Equirus Securities.
Supporting this leadership is SBI's unmatched distribution network of over 23,000 branches and 100 million YONO users. Around 35.5 per cent of equity MAAUM is sourced through Associate Distributors, while 96 per cent of MF AUM mobilised through SBI is managed by SBIAMC. SBI mobilized Rs 27,000 crore of net inflows in FY25, said Equirus.
"Monthly systematic flows account for 12.6 per cent of industry flows, broadly in line with its equity QAAUM market share. We expect FY26-FY29E revenue/EBITDA CAGR of 14 per cent/15 per cent, driven by robust MF AUM growth and improving operating leverage. At ~30 times FY28E EPS, valuation appears attractive" it said and initiated coverage with 'Long' and a March 2027 target price of Rs 675.
SBI Funds Management Ltd was established in 1992 and is the largest asset management company (AMC) in India based on assets under management (AUM). The issue was overall subscribed 41.66 times, attracting bids worth nearly Rs 3 lakh crore through a 63.82 lakh applications.
Even before making its stock market debut on Tuesday, July 21, shares of SBI Funds Management (SBI Funds) has managed to draw attention from select brokerage firms, which have initiated coverage on the listing-bound candidate, citing up to 30 per cent upside potential in the company on the back of its strong networks and leadership in the markets.
Emkay's positive view rests on three pillars SBI’s brand and distribution, coupled with significant under-penetration of SBI MF within the SBI Bank channel; the sustained shift in asset mix toward higher-yielding assets such as equity and alternate investments may support revenue yields; and economies-of-scale-led operating leverage is expected to drive 17 per cent EBITDA CAGR over FY26-29E.
"As the savings and investment needs of Indians evolve, the middle class is increasingly embracing mutual funds as its core investment vehicle, and SBI AMC has all the ingredients to become 'the asset manager to every Indian,' just as its parent has become 'the banker to every Indian.' We initiate coverage on SBI AMC with BUY and target price of Rs 750," it added.
To recall, the initial public offering of SBI Funds Management was open for subscription between July 14-16 which was sold for Rs 545-574 apeice, with a lot size of Rs 26 equity shares. The company raised a total of Rs 9,813 crore from its maiden offer, which was entirely an offer-for-sale (OFS) of up to 17,09,56,631 equity shares from its parent State Bank of India (SBI) and Amundi.
SBI Funds is India's largest AMC, with Rs 12.6 lakh crore of MF QAAUM and a 15.1 per cent market share, spanning leadership across active and passive strategies. It is well-poised to capitalise on India's financialization opportunity, its equity QAAUM grew at 33 per cent CAGR over FY21-June 2026, with market share rising to 12.7 per cent from 10.2 per cent, said Equirus Securities.
Supporting this leadership is SBI's unmatched distribution network of over 23,000 branches and 100 million YONO users. Around 35.5 per cent of equity MAAUM is sourced through Associate Distributors, while 96 per cent of MF AUM mobilised through SBI is managed by SBIAMC. SBI mobilized Rs 27,000 crore of net inflows in FY25, said Equirus.
"Monthly systematic flows account for 12.6 per cent of industry flows, broadly in line with its equity QAAUM market share. We expect FY26-FY29E revenue/EBITDA CAGR of 14 per cent/15 per cent, driven by robust MF AUM growth and improving operating leverage. At ~30 times FY28E EPS, valuation appears attractive" it said and initiated coverage with 'Long' and a March 2027 target price of Rs 675.
SBI Funds Management Ltd was established in 1992 and is the largest asset management company (AMC) in India based on assets under management (AUM). The issue was overall subscribed 41.66 times, attracting bids worth nearly Rs 3 lakh crore through a 63.82 lakh applications.