SBI Funds Management, India's largest asset management company (AMC), has gone public with its eagerly awaited initial public offering (IPO) of Rs 9813 crore on Tuesday, July 14. The stocks will trade at Rs 545 to Rs 574 apiece and the issue will be open till July 16.

Key Highlights

• The IPO of SBI Funds Management valued between Rs 545 and 574 per share, opened on July 14 with an offering of Rs 9,813 crore.
• The grey market premium is in the neighborhood of 18%, and some brokers such as Anand Rathi have given a subscribe rating.

IPO Structure and Key Details

The retail investors have to apply for buy at least 26 share which means at the top end of the price band they have to apply for Rs 14,924. The company's shares are proposed to be listed on both the BSE and NSE. The public issue is a full offer for sale (OFS), where the sale of 17.10 crore equity shares is being made by the existing shareholders – State Bank of India and Amundi. The company won't receive any proceeds from the IPO because there is no fresh issue component, only proceeds of the offering will be credited to the selling shareholders.

Grey Market Signals Healthy Listing Gain

Ahead of the IPO, SBI Funds Management has been attracting strong attention in the unofficial market, with the grey market premium (GMP) currently hovering around 18%, suggesting expectations of a healthy listing gain. However, GMP remains an unofficial indicator that can fluctuate significantly before listing and should not be treated as a guarantee of actual listing performance.

Following the issue, promoter and promoter group ownership is expected to decline from 98.2% to 89.8%, while public shareholding will rise to 10.2%, according to Anand Rathi.

Brokerages Recommend "Subscribe"

Brokerages have largely maintained a positive outlook on the issue. Anand Rathi has recommended "Subscribe," noting that while the IPO is fully priced, SBI Funds Management's leadership position, asset-light model, SBI-Amundi parentage, and retail investor base support the offer. Nirmal Bang observed that the valuation stands at a discount compared with listed peers ICICI Prudential AMC and HDFC AMC on key parameters.

Also Read: SBI Funds Management Raises Rs 1,655 Crore Through Pre-IPO Placement

India's Largest AMC by AUM

SBI Funds Management serves as the investment manager for SBI Mutual Fund and is India's largest AMC based on quarterly average assets under management (QAAUM). As of March 2026, it managed QAAUM of Rs 12.5 lakh crore, accounting for a 15.3% share of the domestic mutual fund industry. The company benefits from State Bank of India's extensive banking and distribution network, combined with Amundi's global asset management expertise. Per Nirmal Bang, SBI Mutual Fund manages 128 schemes spanning equity, debt, hybrid funds, ETFs, index funds, overseas funds, PMS, AIFs, SIFs, and advisory mandates.

The company's retail presence is significant, with 17.95 million individual investors and 16.21 million live SIP accounts as of March 2026. Including PMS and advisory mandates, total QAAUM stood at Rs 29.46 lakh crore. On the digital front, SBI Funds Management processed an average of 1.31 million transactions monthly during FY26, with nearly 94.3% completed digitally. Its InvesTap platform had 3.97 million registered users, 3.39 million active users, and over 5.8 million downloads by FY26-end.

SIP inflows are another major strength for the company, with 16.2 million live SIP accounts, monthly SIP inflows of Rs 4,059 crore, and SIP AUM worth Rs 1.73 lakh crore during FY26.

Financial Performance

SBI Funds Management has been consistently growing over the last three financial years. Revenue from operations rose to Rs 4,389 crore in FY26, up from Rs 3,598 crore in FY25 and Rs 2,691 crore in FY24. The consolidated profit after tax rose to Rs 3,067 crore in FY26 from Rs 2,540 crore in FY25 and Rs 2,073 crore in FY24. The EBITDA margin was 79.1% in FY26 compared to 77.1% in FY25 while the return on equity was 51.4% in FY26 and 50.1% in FY25. The IPO is trading at 38.1 times its FY26 earnings and 33.6 times the EV/EBITDA at the top end of its price band.

Key Risks to Consider

The risks should also be taken into consideration by investors. Profitability is tied to market performance, with the company's fee income tied to AUM, and any significant market correction, poor fund performance or high redemption rates may impact profitability. Fees and distributor payouts could also be under pressure over the long term as they face increased competition from other established AMCs, ETFs, ULIPs, direct equity investing and digital investment platforms.