₹11,102.15 Cr
Total Issue Size
₹14,715 (27 shares)
1 Lot Cost (Min. Inv.)
₹27,250.00 Cr
Market Cap (At Upper Band)
₹3,330.65 Cr (30.0% of Issue)
Anchor Book Allocation
+₹96 ()
Grey Market Premium Updated 29 Aug 2026, 04:03 PM IST
Issue Structure & OFS vs Fresh Capital Split
| Offering Parameter / Tranche |
Allocation & Value |
% of Gross Issue |
Strategic Mandate / Terms |
| Fresh Issue (Primary Growth Capital) | Nil (Not applicable). Pure OFS. | 0.0% | Balance sheet equity expansion directly fueling capex, debt repayment & operations |
| Offer for Sale (OFS - Insiders) | Up to 203,709,239 Equity Shares (100% of the Offer). (Total amount ₹[●] cr is to be determined based on the final price band). | 100.0% | Secondary liquidity realization for existing promoters & early institutional funds |
| Gross Total Issue Size | ₹11,102.15 Cr | 100.0% | Aggregate primary market capital raising at upper price band |
| Net Proceeds Reaching Company | Nil. The company will not receive any proceeds from the Offer; all proceeds go to the Selling Shareholders. | - | Net growth funds after deducting book building issue & underwriting expenses |
| Anchor Investor Allocation Tranche | ₹3,330.65 Cr (30.0% of Issue) | Up to 30.0% | Reserved anchor allotment tranche for institutional Qualified Institutional Buyers (QIBs) |
| Pre-IPO WACA Benchmark | State Bank of India's WACA is ₹0.15 per share, and Amundi India Holding's WACA is ₹4.35 per share. (IPO price band ₹[●] is not yet determined). | Weighted average cost of acquisition for promoters & early funds |
| Selling Shareholders & Dilution | Promoters are selling: State Bank of India (up to 128,334,397 shares) and Amundi India Holding (up to 75,374,842 shares). |
| Intermediary / Regulatory Entity |
Entity Name / Details |
Statutory Function & Status |
| Book Running Lead Managers (BRLMs) |
SEBI Registered Merchant Bankers / BRLMs |
Issue pricing, underwriting, book building & institutional roadshows |
| Registrar to the Issue |
SEBI Category-I Registrar |
Allotment finalization, Demat share transfer & ASBA refund processing |
| Proposed Listing Exchanges |
NSE / BSE |
Trading segments, ticker assignment & continuous disclosure compliance |
| Regulatory Prospectus Stage |
DRHP / RHP Filed |
SEBI ICDR compliance review & exchange in-principle listing approval |
Revenue Breakdown, Product Mix & Customer Concentration
| Product / Operating Segment |
Share (%) |
Value / Channel |
Mutual Fund Scheme Management Fees | 95.6% | ₹3,437.79 Cr |
PMS, AIF & Offshore Advisory Fees | 4.4% | ₹159.97 Cr |
| Market Segment / Customer Concentration Tier |
Share (%) |
Reported Value |
Concentration & Risk Profile |
| Mutual Fund Scheme Management Fees | 95.6% | ₹3,437.79 Cr | Largest AMC in India (₹11.5+ Lakh Cr AUM) |
| PMS, AIF & Offshore Advisory Fees | 4.4% | ₹159.97 Cr | Alternative investment management |
| Geographic Distribution | T30: 76.8% | B30: 23.2% | ₹3,598 Cr | Industry-leading retail reach |
| Largest Single Scheme Contribution | 11.4% | ₹409.00 Cr | SBI Equity Hybrid / Liquid Scheme |
| Top 10 Schemes Revenue Contribution | 48.0% | ₹1,726.00 Cr | Broadly diversified AUM base |
Capital Allocation (Where the Fresh Money Goes)
| Object of the Offer / Proposed Expenditure |
Amount (₹ Cr) |
% of Fresh Issue |
Deployment Timeline / Purpose |
| Offer for Sale (100% Secondary Sale by SBI & Amundi) | ₹11,102.15 Cr | 100.0% | 203.7M shares offloaded |
| Fresh Capital to Company | ₹0.00 Cr | 0.0% | Zero debt; ₹4,000+ Cr net worth |
3-Year Audited Financial Health & Margins
| Audited Metric / Line Item |
FY23 |
FY24 |
FY25 |
3-Yr CAGR |
| Revenue from Operations |
₹2,161.59 Cr |
₹2,690.56 Cr |
₹3,597.76 Cr |
+29.0% |
| EBITDA (Operating Profit) |
₹1,810.41 Cr (83.8%) |
₹2,718.82 Cr (101.1%) |
₹3,412.94 Cr (94.9%) |
+37.3% |
| Profit After Tax (PAT) |
₹1,339.71 Cr (62.0%) |
₹2,072.79 Cr (77.0%) |
₹2,540.15 Cr (70.6%) |
+37.7% |
| Operating Cash Flow (CFO) |
₹1,200.74 Cr |
₹1,438.21 Cr |
₹1,992.38 Cr |
+28.8% |
| ROCE (Return on Capital) |
37.05% |
39.52% |
40.23% |
40%+ ROCE |
| Debt-to-Equity (D/E) |
0.00x |
0.00x |
0.00x |
Debt Free |
Governance, Lock-in & Litigation Review
| Shareholder Category / Promoter Group |
Pre-IPO Holding (%) |
Post-IPO Holding (%) |
Mandatory Lock-in Terms & Dilution |
| State Bank of India (Promoter) | 61.86% | 55.56% | 20% locked for 18 Mos; balance 6 Mos |
| Amundi India Holding (Foreign Promoter) | 36.33% | 32.63% | Strategic JV partner; locked 6 Mos |
| Public & Institutional Float | 1.81% | 11.81% | 100% secondary OFS float |
| Litigation Category / Proceedings |
Adjudicating Forum |
Quantifiable Exposure |
Materiality Assessment |
| Direct & Service Tax Reassessments | ITAT / CESTAT | ₹148.45 Cr | Contested industry-wide tax matters |
| Regulatory Disciplinary Actions | SEBI / AMFI | ₹0.00 Cr | Unmodified audit report |
1. Executive Business Summary & Core Operations
SBI Funds Management's IPO is a highly anticipated listing of India's largest AMC. With ₹29 lakh cr in total AUM, the business represents a pure-play proxy on India's financialization of savings. However, investors must weigh the high-quality operational moat against a pure exit-driven OFS and a massive pre-IPO promoter dividend payout.
2. Value Proposition, Products & Operations
SBI MF operates as a full-service asset manager offering 126 mutual fund schemes (₹12.5 lakh cr AUM), PMS (₹16.5 lakh cr AUM, #1 in India with 39% share), and AIFs. It operates a diversified, fee-based revenue model where management fees are charged daily as a percentage of scheme assets.
3. Industry Dynamics & Market Positioning
The IPO is a 100% Offer for Sale (OFS) of up to 203,709,239 shares (10.0% of capital) by State Bank of India and Amundi India Holding. The company will receive zero proceeds, and all listing expenses will be borne by the selling promoters. Post-issue promoter holding remains high at 88.19%.
4. Detailed Financial Trajectory & Margin Analysis
The financial statements are highly clean. Revenue grew at 29% CAGR to ₹3,597.76cr in FY25, with PAT reaching ₹2,540.15cr. Operating cash conversion is strong with CFO/PAT averaging 79%, and the company has zero debt and ₹8,146cr in net cash/investments (pre-dividend).
5. Promoter Integrity, Governance & Shareholding
Board governance is strong with 50% independent directors, stable CFO/CS tenures since 2008-2009, and clean auditor reports from Kirtane & Pandit LLP. RPTs are dominated by the SBI brand royalty (₹41.26cr in FY25, rising trend) and custodial charges to SBI-SG (₹29.40 cr).
6. Relative Valuation & Benchmark Multiples
| Company Name |
CMP / Issue Price (₹) |
P/E Ratio (x) |
EV / EBITDA (x) |
RoNW / ROCE (%) |
Annual Revenue (₹ Cr) |
| SBI Funds Management Limited | ₹545 | 37.7x | 26.5x | 40.2% | ₹3,597.76 Cr |
| HDFC Asset Management Company | ₹4,250 | 41.5x | 31.2x | 36.8% | ₹3,165.00 Cr |
| Nippon Life India Asset Management | ₹690 | 41.1x | 29.8x | 32.4% | ₹1,850.00 Cr |
| UTI Asset Management Company | ₹1,120 | 16.7x | 11.2x | 18.5% | ₹1,480.00 Cr |
| Industry AMC Composite | - | 33.1x | 24.1x | 29.2% | - |
Listed peers trade at a P/E range of 16.7x (UTI) to 53.7x (ICICI Pru), with HDFC at 41.5x and Nippon at 41.1x. The average composite peer P/E is 36.4x. SBI MF's superior ROE (33.8%) and higher growth (29% CAGR) justify a premium multiple at par with or above HDFC/ICICI.
Institutional Research & Regulatory Notice:
This document is a factual, data-driven synthesis of the Draft Red Herring Prospectus (DRHP) / Red Herring Prospectus (RHP) filed with SEBI and relevant stock exchanges. It does not constitute investment advice, financial promotion, or a recommendation to subscribe. Primary market investments carry market risk. Consult a SEBI-registered investment advisor before making allocation decisions.
