SBI Funds Management is launching its IPO today for the public with a price band of ₹545 to ₹574 a share.
IPO details and issue structure
SBI Funds is a joint venture between the country’s largest lender, State Bank of India and Europe’s largest asset manager, Amundi. SBI and Amundi are offloading a total of 20.37 crore shares in the offering. The IPO is open until July 16. Up to 50% of the issue is reserved for Qualified Institutional Buyers (QIBs), 35 per cent to Retail Investors and 15 per cent to Non-Institutional Investors/HNIs. The IPO also features a specific reserved quota for eligible State Bank of India shareholders. It has also reserved shares worth ₹170 crore for eligible employees, who will receive a discount of ₹54 a share while bidding for the IPO. The lot size is 26 shares.
Angel One
At the upper price band of ₹574, the IPO is valued at a post-issue P/E of 38.12x FY26 EPS, which appears fully priced relative to peers. However, supported by its market leadership, strong sponsor backing, expanding retail penetration, continued investments in digital capabilities, growing passive and alternative product offerings, and increasing international presence, we believe the company is well positioned to capitalise on the structural growth of India’s asset management industry. Accordingly, we recommend a ‘Subscribe’ rating for medium to long-term investors.
Key Risks ● The company’s revenue and profitability are directly linked to assets under management (AUM), making earnings sensitive to equity market volatility, adverse capital market conditions, regulatory risks, investor outflows and changes in fund mix, which could impact fee income and overall financial performance.
Anand Rathi
Anand Rathi highlights that the company operates an asset-light, fee-based business model through the management of mutual funds, Portfolio Management Services (PMS), Alternative Investment Funds (AIFs), Specialised Investment Funds (SIFs) and advisory mandates across equity, debt, hybrid, passive and overseas investment products.
On the valuation front, at the upper price band, the company is valued at a P/E of 38.1 times. It recommends a “Subscribe” rating to the IPO.
Arihant Capital
Arihant Capital highlights that the company is India’s largest asset management company (AMC) by quarterly average mutual fund assets under management (QAAUM).
On the valuation front, at the upper price band, the issue is valued at a P/E of 38.1 times, broadly in line with or at a discount to larger listed peers, supported by its dominant franchise and superior return ratios. It recommends a “subscribe for long term” rating.
Chola Securities
Chola Securities highlights that the company benefits from the strong SBI franchise, which provides a significant competitive advantage through access to SBI’s extensive branch network, large customer base, and strong brand credibility, supporting customer acquisition and asset mobilisation, particularly in Beyond Top 30 (B-30) cities.
On the valuation front, it is fairly valued at 38 times FY26 earnings, compared with listed peers such as HDFC AMC (41 times), ICICI Prudential AMC (48 times), and Nippon Life India AMC (51 times), considering its AUM growth prospects and revenue yield profile relative to peers. It has a “SUBSCRIBE” rating.
SMIFS Limited
SMIFS Limited highlights that the company combines SBI’s unmatched domestic reach with Amundi’s global asset-management expertise.
On the valuation front, using FY26 profit after tax (PAT) of ₹30,673.76 million, the implied P/E is approximately 38 to 39 times FY26 earnings. 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. It has a ‘Subscribe’ rating.
Kantilal Chhaganlal Securities Pvt Ltd
Rating – Subscribe – Long Term Investor Apply
SBI The valuation at 38x P/E looks attractive compared to peers. Strong Parentage & Distribution Networking, great Brand; Big Market, 14.7% of Total Industry Mutual Fund AUM; Positive Long-term Industry Outlook, and IPO Price Band Fairly Valued.
Nirmal Bang
SBI Mutual Fund is attractively valued relative to listed peers. The company commands the highest MF QAAUM of Rs. 12.5 lakh crore with a 15.3% market share, supported by a diversified product portfolio and a strong retail and institutional franchise. While Active MF QAAUM grew at a CAGR of 22% (FY24–FY26), the company continues to outperform on profitability and operating efficiency with a cost-to-income ratio of 20% and a strong EBITDA margin of 79%. SBI MF also reported a healthy ROE of 51%, significantly higher than HDFC AMC (33%) and Nippon Life AMC (35%). At 33.6x EV/EBITDA and 38.1x P/E, the issue is available at a discount to IPRU AMC & HDFC AMC. Given its market leadership, strong distribution network, healthy profitability and favourable industry outlook, we assign a ‘SUBSCRIBE’ rating to the issue from a medium- to long-term perspective.
Swastika Investmart
India’s largest AMC with ₹12.5 lakh crore QAAUM, a strong SIP franchise, and a robust SBI–Amundi distribution network. Valued at 38.12x FY26 EPS, below the industry average of 41.64x, offering reasonable valuations. Strong RoNW of 43.02% with 81.56% EBITDA margin, reflecting a highly profitable asset-light business. A 100% 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.