SBI Funds Management
IPO Size: Rs. 9,813 cr, Entirely Offer for Sale (OFS)
- By Indian promoter SBI (60.3% stake to drop to 55.4%)
- By foreign promoter Amundi, Europe’s largest asset manager (36.3% stake to drop to 32.8%)
Price band: Rs. 545-574 per share
- SBI has undertaken pre-IPO secondary sale of 2.88 cr shares or 1.42% equity at Rs. 574 per share worth Rs. 1,655 cr on 10th Jul 2026
M cap: Rs. 1.17 lakh cr, implying 8.4% dilution
- 7.6% of OFS is reserved for SBI shareholders
IPO Date: Tue 14th Jul to Thu 16th Jul 2026, Listing Tue 21st Jul 2026
Grey Market Premium (GMP): We are strongly against ‘grey market premium’ as it is an unofficial figure, against SEBI guidelines.
India’s Largest AMC
SBI Funds Management (SBI AMC), 60% subsidiary of SBI, is India’s largest asset management company (AMC) with assets under management (AUM) of Rs.12.5 lakh cr as of 31.3.26, enjoying 15.3% market share of domestic mutual fund industry AUM. Thanks to parent SBI’s trust and reach, it is also the largest passive / ETF AMC with 28% market share, the largest in B30 (beyond top 30) cities with 19% market share and largest SIP accounts of 1.6 cr with 11% share.
Benchmarking against Large Peers
| AMCs |
| SBI AMC | ICICI AMC | HDFC AMC | Nippon Life | Aditya Birla AMC |
| Qtrly Avg Mutual Fund AUM (31.3.26) | Rs cr | 12,50,998 | 11,04,787 | 9,27,500 | 7,24,965 | 4,35,900 |
| - AUM growth | YoY | 17% | 26% | 20% | 27% | 14% |
| - equity mix | % of AUM | 46% | 56% | 65% | 46% | 45% |
| FY26 Revenue | Rs cr | 4,389 | 5,765 | 4,122 | 2,709 | 1,845 |
| - non-operating income | % to PBT | 15% | 5% | 13% | 11% | 17% |
| FY26 PAT | Rs cr | 3,067 | 3,298 | 2,858 | 1,529 | 975 |
| Profit Yield | % to AUM | 0.25% | 0.30% | 0.31% | 0.21% | 0.22% |
| Operating Profit Yield | % to AUM | 0.21% | 0.28% | 0.27% | 0.19% | 0.19% |
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| Mcap* | Rs cr | 1,16,914 | 1,56,186 | 1,18,171 | 76,989 | 33,089 |
| - as % to AUM |
| 9.3% | 14.1% | 12.7% | 10.6% | 7.6% |
| PE | FY27E | 32x | 39x | 34x | 44x | 33x |
*as of 10Jul26, at Rs 574 for SBI AMC
- Growth: SBI AMC’s FY26 AUM growth of 17% lags ICICI’s 26%, HDFC’s 20% and Nippon’s 27%, but former’s highest base makes high-teen growth also healthy.
- AUM Mix: Even though share of equity has increased from 36% in FY23 to 46% of AUM in FY26, it remains below industry average of 56%. Share of actively-managed portfolio of 68% is lower than ICICI’s 83% and HDFC’s 91%.
- Share of passive (ETF, index fund etc.) has reduced from 36% of AUM in FY23 to 32% in FY26, yet it remains higher than peers.
- Profit: SBI AMC’s FY26 PAT stood at Rs. 3,067 cr, against Rs.3,298 cr for ICICI and 2,858 cr for HDFC. Of this, 15% is other income for SBI, against 5% for ICICI, 11% for Nippon and 13% for HDFC. Thus, SBI’s profit mix is slightly inferior to peers.
- Profit Yield: Due to lower mix of equity and actively-managed schemes, PAT yield is lower than larger peers:
- FY26 PAT yield of 25 bps trails ICICI’s 30 bps and HDFC’s 31 bps, but leads Aditya Birla’s 22 bps and Nippon’s 21 bps.
- Operating PAT yield i.e. net profit less other income divided by Quarterly average AUM, is a better profitability parameter reflecting core earnings. SBI’s 21 bps lags ICICI’s 28 bps and HDFC’s 27 bps, but is higher than both Nippon and Aditya Birla’s 19 bps.
Pricing leaves ‘Money on the Table’
M cap of Rs. 1,16,914 cr implies a historic PE multiple of 38x on FY26 PAT and is 9.3% of AUM. On FY27E estimated EPS of around Rs. 18, SBI Funds’ PE multiple of 32x is lower than all 4 peers:
- India’s most profitable AMC, ICICI AMC, is ruling at current year PE multiple of 39x
- HDFC AMC is trading at 34x PE with m cap being 12.7% of AUM
- Largest non-bank AMC Nippon, being the only AMC among the top 8 to have increased AUM market share since Mar 2021, is ruling at the highest PE of 44x for expectation of growth momentum to be maintained.
- Aditya Birla AMC is trading at a PE of 34x, even for low growth and not-so-impressive profitability.
Thus, while SBI Funds deserves lower multiple vis-a-vis ICICI and HDFC, the PE multiple has scope to rise by 10-15% upon listing, making IPO pricing attractive.
Of the 55 AMCs, top 8 control nearly 70% of AUM, indicating no entry barriers but performance and trust built over the years remain vital for growth. This will help SBI Funds build up on its investor base of 1.8 cr, with better share in B30 making growth broad-based, granular and sustainable.
