SBI Funds Management's ₹9,813 crore initial public offering opened for subscription today (July 14), with subscription closing on July 16. According to ET Now, the company has fixed the offer price at ₹574 per equity share, with investors required to bid in multiples of 26 shares. The Grey Market Premium (GMP) is currently at ₹100, indicating a 17.42% premium over the upper end of the price band, suggesting an estimated listing price of ₹674 per share if sentiment sustains. The IPO comprises an entirely offer-for-sale of 17.10 crore shares, representing a 10% stake by promoters State Bank of India and Europe's Amundi. The shares are tentatively scheduled to debut on NSE and BSE on July 21, 2026. The issue size was reduced from the earlier planned ₹11,693 crore after SBI last week raised ₹1,880 crore from a group of investors.
Ahead of the public issue, SBI Funds Management demonstrated robust investor confidence by raising ₹2,663 crore from anchor investors, allotting 4.64 crore equity shares to 129 anchor investors at ₹574 per share, the upper end of the price band. As reported by Business Standard, 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. Leading domestic institutions including LIC, HDFC Mutual Fund, ICICI Prudential Mutual Fund, Nippon India Mutual Fund, and HDFC Life Insurance also participated in the anchor allocation. The IPO has reserved not more than 50% for qualified institutional buyers (QIBs), not less than 15% for non-institutional institutional investors (NIIs), and not less than 35% for retail investors, with a discount of ₹54 per equity share offered to eligible employees. According to ET Now, State Bank of India has announced a discount of ₹54 per share for eligible employees participating in the IPO.
SBI Funds Management has established itself as the largest AMC in India with 15.3% share of the mutual fund industry in terms of QAAUM as of March 31, 2026. The company holds the largest portfolio management services (PMS) provider in India with 39.7% market share as of March 31, 2026, and maintains one of the biggest Specialised Investment Fund (SIF) platforms with a 28.2% share of the SIF segment and AUM of ₹2,995 crore. As per Choice Equity Broking, the company's total QAAUM stood at ₹29.46 lakh crore at the end of FY26 when including portfolio management services and alternative investment fund mandates. The fund house serves more than 16.05 million individual and institutional investors as of December 31, 2025, with 1.62 crore live SIP accounts resulting in a 15.5% share of the industry's live SIP accounts and an 11.4% share of total SIP inflows. Notably, 1.59 crore of live SIPs have been active for 37 months or more, demonstrating the long-term nature of investor relationships.
SBI Funds Management demonstrated robust financial performance in FY26, reporting a 20.76% year-on-year increase in net profit to ₹3,067.38 crore, compared with ₹2,540.15 crore in FY25. As reported by The Economic Times, the company managed approximately ₹16.32 lakh crore in assets under management (AUM) as of 2025, commanding around 15.5% of India's mutual fund industry's total AUM. The company benefits from strong operating leverage, with the lowest operating expense ratio among the top 10 AMCs at 0.08% of QAAUM in FY26, compared with a range of 0.10%-0.25% for peers. The company's diversified business model includes equity, debt and hybrid mutual funds, exchange-traded funds (ETFs), and portfolio management services. According to Live Mint, 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). The company's return on equity (ROE) reached 43% in FY26, second only to ICICI Prudential, with a cost-to-income ratio of 19.5% and cost-to-QAAUM of 8 basis points.
SBI Funds Management's IPO will test India's challenging billion-dollar IPO market record, where eight of thirteen large IPOs are trading above their adjusted issue prices as of July 13, while five remain in the red with a median return of just over 2%. According to The Economic Times, major offerings like New India Assurance has lost 77% from its adjusted issue price, while NMDC is down 72%. Hyundai Motor India, India's largest IPO, is up less than 2% nearly two years after listing. At the upper end of the price band, SBI Funds Management's IPO is valued at 38.1 times FY26 earnings and 33.6 times enterprise value to EBITDA, with a post-issue market capitalisation of about ₹1.17 lakh crore. Multiple brokerages have issued positive recommendations, with Nirmal Bang Securities noting the valuation is lower than some listed peers including HDFC Asset Management and ICICI Prudential Asset Management. Anand Rathi described the issue as fully priced but highlighted the company's scale, asset-light business model, retail franchise, and support from SBI and Amundi as combined strengths.
