SBI Funds Management IPO

About SBI Funds Management IPO

The SBI Funds Management IPO opens on TBA and closes on TBA. The allotment of shares will take place on TBA. The credit of shares to the demat account will take place on TBA. The initiation of refunds will take place on TBA. The listing of shares will take place on TBA.

The offer consists of an offer for sale component. The offer for sale portion includes 20,37,09,239 shares of ₹1 aggregating up to ₹[TBA] crores. The total number of shares is 20,37,09,239 and the aggregate amount is yet to be finalised.

SBI Funds Management IPO’s price band is set at TBA to TBA per share. The lot size for an application is TBA. The minimum amount of investment required by a retail investor is ₹TBA (TBA shares) (based on upper price). The minimum lot size investment for HNI is TBA.

SBI Funds Management is India’s oldest AMC, acting as the investment manager to SBI Mutual Fund, which commenced operations in June 1987 as the first mutual fund entity outside the Unit Trust of India. The promoters of the company are State Bank of India, Amundi India Holding and Amundi Asset Management. They are also India’s largest passive (exchange traded fund (“ETF”) and index funds) asset manager with passive (ETF and index funds) QAAUM of ₹ 399953 crores representing a market share of 29.6% as at December 31, 2025, a leadership position they have held since March 2021

Objectives of SBI Funds Management IPO

• Carry out the offer for sale of up to 203,709,239 equity shares of face value of ₹1 each by the promoter selling shareholders aggregating up to ₹ [TBA] crores.
  
• Achieve the benefits of listing the equity shares on the stock exchanges.
  

Industry Outlook

The top three bank-led Asset Management Companies (AMCs) have consistently maintained their market leadership position, with a stable market share of around 40-41% between Fiscal 2020 and 9MFY26, demonstrating sustained structural dominance despite increasing industry competition and new entrant expansion. This unwavering leadership is a testament to the strength of their established distribution networks, strong banking parentage, brand credibility, and cross-selling capabilities, which have enabled them to maintain a deep penetration in both Tier 1 (T30) and Tier 2/3 (B30) locations. Notably, this trend of top AMCs dominating the market is not unique to India, as globally, across various geographies, the top asset managers have consistently maintained their market leadership position, driven by their strong brand reputation, extensive distribution networks, and ability to adapt to changing market dynamics, solidifying their position as industry leaders.

The mutual fund industry's AUM grew at ~19% CAGR between FY15 and FY25 driven by uneven growth across sponsor types. Bank-led AMCs outpaced non-bank led ones with ~22% CAGR vs ~16% leveraging their strong parent bank distribution, cross-selling capabilities, and wider reach in B30 cities. The top players have maintained their dominance, with the top 3 AMCs holding ~40% share and top 5 AMCs commanding over 52%. However, smaller AMCs are gaining traction through differentiated strategies, digital penetration, and innovation, leading to a gradual diversification of industry concentration. Bankled AMCs continue to lead on scale and growth stability, while non-bank AMCs compete on specialization, innovation, and channel diversification, indicating a shift towards competitive depth in the industry.

About SBI Funds Management

SBI Funds Management is India’s oldest AMC, acting as the investment manager to SBI Mutual Fund. They serve a large unique investor base of 1.605 crore as of December 31, 2025 in their mutual fund business comprising individuals as well as institutional customers and manage a diversified portfolio of 126 mutual fund schemes across equity and equity-oriented, debt, arbitrage, ETFs, index and overseas fund-of-funds, and liquid and overnight schemes, thereby offering both actively managed and passive investment strategies to cater to diverse investor risk profiles and financial objectives. Beyond their core mutual fund schemes business, they offer a comprehensive suite of investment solutions across product categories and geographies. They provide PMS and advisory mandates as well as alternative investment funds (“AIFs”), and specialized investment funds (“SIFs”). They provide investment management and advisory services to a range of offshore India-focused funds under regulatory approval in accordance with the SEBI Mutual Funds Regulations.

Their international business comprises: (i) India-focused investment management mandates for overseas institutional investors with AUM of ₹23209.037 crores across Japan, Australia, and Korea, (ii) Undertakings for Collective Investment in Transferable Securities (“UCITS”) India-focused funds sponsored by Amundi with AUM of ₹8681.648 crores distributed across Europe, Middle East, South America, and Southeast Asia, and (iii) advisory services to Amundi’s Global Emerging Markets mandates of ₹ 14583.965 crores of India-related assets under advisory, as of December 31, 2025. They have a pan-India distribution presence supported by an omnichannel approach that integrates physical and digital platforms.

Strengths of SBI Funds Management

• Largest asset management company in India in terms of mutual fund assets under management (Source: CRISIL Report), benefitting from strong operating leverage driven by scale and growth.
  
• India’s largest portfolio management services provider by PMS and advisory assets under management, with a 39.0% market share in the PMS segment, and India’s largest Specialized Investment Fund platform with a 61.0% market share (Source: CRISIL Report).
  
• Market-leading SIP franchise with a 16.09% market share by live SIP count (Source: CRISIL Report) and strong investor stickiness.
  
• Dual Parentage - Integration of State Bank of India’s domestic franchise with Amundi’s global expertise.
  
• Process-driven investment framework with demonstrated track record of product innovation and consistent investment performance.
  
• Well-diversified, pan-India multi-channel distribution infrastructure.
  
• Robust technology infrastructure and data-driven investor engagement.
  
• Disciplined governance and risk management underpinning long-term stewardship.
  

Risks of SBI Funds Management

• Their revenues and profitability are directly linked to their quarterly average assets under management (“QAAUM”).
  
• Their business is dependent on the performance of Indian capital markets, and any adverse developments could adversely affect their QAAUM, revenues and profitability.
  
• Poor performance of their schemes relative to benchmarks or peer schemes could lead to investor redemptions, difficulty in increasing their QAAUM, and reputational damage.
  
• A portion of their mutual fund QAAUM and revenue from mutual fund operations is concentrated in a limited number of schemes.
  
• They are exposed to liquidity risks in their debt and money market schemes.
  
• They are subject to extensive regulation by SEBI and other regulatory authorities.
• They are dependent on their distribution network.
  
• Their revenues and profitability are subject to fee pressure from regulatory changes, competitive dynamics, and investor preferences for lower-cost products.
  
• The company and certain of their promoters are subject to various legal proceedings.
  
• They face risks relating to the growth of passive investment products.
  

^To be updated upon finalization of the Price Band.

(1) Return on net worth is computed as ratio of consolidated profit after tax attributable to the equity shareholders of the company for the year ended March 31, 2025 to average net worth of year ended March 31, 2025. Average Net Worth represents the simple average of net worth as at the last day of the relevant fiscal year and as of the last day of the preceding fiscal year.

(2) Net worth includes share capital and reserve and surplus.

(3) Net asset value per equity share is computed as ratio of net worth to total number of equity shares outstanding at the year ended March 31, 2025.

(4) P/E ratio for the peers other than ICICI Prudential Asset Management Company Limited are computed based on closing market price as on March 13, 2026 at NSE, divided by diluted EPS (on consolidated basis) based on the audited financial results of the company for the year ended March 31, 2025. For ICICI Prudential Asset Management Company Limited, P/E ratio is computed based on closing market price as on March 13, 2026, at NSE, divided by diluted EPS based on the restated financials for the year ended March 31, 2025, as disclosed in its prospectus dated December 16, 2025.

*Notes for listed peers: (1) Sources for listed peers’ information are prospectus issued by ICICI Prudential Asset Management Company Limited and annual reports for Fiscal 2025 issued respectively for HDFC Asset Management Company Limited, Nippon Life India Asset Management Limited, Aditya Birla Sun Life Asset Management Company Limited and UTI Asset Management Company Limited.

(2) All the financial information for listed industry peers mentioned above is on consolidated basis wherever applicable and is sourced from the audited financial results of respective companies for the year ended March 31, 2025.

(3) Basic and Diluted EPS reported for HDFC Asset Management Company Limited takes into consideration the allotment of bonus equity shares as on November 26, 2025.

(4) Basic and Diluted EPS reported for ICICI Prudential Asset Management Company Limited takes into consideration the allotment of bonus equity shares as on November 05, 2025.

(5) NAV reported for HDFC Asset Management Company Limited takes into consideration the allotment of bonus equity shares as on November 26, 2025.

(6) NAV reported for ICICI Prudential Asset Management Company Limited takes into consideration the allotment of bonus equity shares as on November 05, 2025.

Anchor Investor Bidding Date: TBA

• Registrar: KFin Technologies Limited

Book Running Lead Managers:

• Jefferies India Private Limited
  
• JM Financial Limited
  
• Motilal Oswal Investment Advisors Limited
  
• SBI Capital Markets Limited*
  
• Kotak Mahindra Capital Company Limited
  
• Axis Capital Limited
  
• BofA Securities India Limited
  
• HSBC Securities and Capital Markets (India) Private Limited
  
• ICICI Securities Limited
  

*SBI Capital Markets Limited is an associate of the Company and State Bank of India. In compliance with Regulation 21A of SEBI Merchant Bankers Regulations, SBICAPS would be involved only in the marketing of the Offer.

SBI Funds Management Business Model

The company earns its revenue as an asset management company (“AMC”) in India.

SBI Funds Management Growth Trajectory

SBI Funds Management’s Total Income for FY25 was ₹4236.151 crores, whereas in FY24 and FY23 it was ₹3426.079 crores and ₹2412.576 crores, respectively.

The Profit After Tax for FY25 was ₹2540.154 crores, whereas in FY24 and FY23 it was ₹2072.785 crores and ₹1339.713 crores, respectively.

Their EBITDA for FY25 was ₹3412.942 crores, whereas in FY24 and FY23 it was ₹2718.823 crores and ₹1810.406 crores, respectively.

SBI Funds Management Market Position

SBI Funds Management’s retail franchise is a core strength of their mutual fund business, and they had an individual investor base of 1.602 crore investors as of December 31, 2025. As of the same date, their individual investor (comprising retail and high net worth individuals (“HNI”)) mutual fund MAAUM stood at ₹ 606139 crores, representing 48.05% of their total mutual fund MAAUM.

They are a leader in Systematic Investment Plans (“SIPs”) in India by number of live SIP accounts, with 1.576 crore on live SIPs representing a market share of 16.09% as of December 31, 2025 (Source: CRISIL Report).

As of 31 March 2025, the company’s Total Income, Profit After Tax, and EBITDA were ₹4236.151 crores, ₹2540.154 crores, and ₹3412.942 crores, respectively.

How to apply for SBI Funds Management IPO?

• Step 1: Log in to your Kotak Neo Demat account to access IPO investments. Next, select the current IPO section.
• Step 2: Specify IPO details. Enter the number of lots and the price you wish to apply for.
• Step 3: Enter UPI ID. After entering your UPI ID, click submit. This will place your bid with the exchange.
• Step 4: Mandate Notification. Your UPI app will receive a mandate notification to block funds.
• Step 5: Approve Request. Your funds will be blocked once you approve the mandate request on your UPI.