Company Overview

Business Description: SBI Funds Management Limited functions as the investment manager to SBI Mutual Fund. Its core businesses include managing mutual funds (including Specialised Investment Funds), providing Portfolio Management Services, managing Alternative Investment Funds, and providing advisory services to offshore clients.

Subsidiaries: Not explicitly detailed in the provided data.

Offer Details

Offer Type: Initial Public Offering (IPO) of Equity Shares

Offer Size: Up to 170,956,631 Equity Shares of face value of ₹1 each aggregating up to ₹[●] Million (approximately ₹97,953.21 million at cap price). This constitutes 8.39% of the post-offer paid-up equity share capital.

Price Band: ₹545 to ₹574 per Equity Share of face value of ₹1 each. The floor price is 545 times the face value and the cap price is 574 times the face value.

Objects of the Issue: The offer is entirely an Offer for Sale by the promoter selling shareholders. The company will not receive any proceeds from the offer.

Financials

Key Financials:

  • Weighted Average Return on Net Worth for last three fiscal years: 38.77%
  • Price to Earnings Ratio (P/E) based on diluted EPS for FY ended 2026: 36.24x at lower price band (₹545) and 38.16x at upper price band (₹574)
  • Management Fees as % of Total Revenue: 96.47% in Fiscal 2026 (₹42,344.92 million / ₹43,894.88 million), 95.55% in Fiscal 2025, 97.01% in Fiscal 2024
  • Total Revenue from Operations: ₹43,894.88 million (Fiscal 2026), ₹35,977.57 million (Fiscal 2025), ₹26,905.58 million (Fiscal 2024)
  • Total Expenses: ₹9,706.16 million (Fiscal 2026), ₹8,718.13 million (Fiscal 2025), ₹7,524.57 million (Fiscal 2024)

Capital Structure:

  • Pre-Offer Paid-Up Equity Share Capital: 2,036,827,612 Equity Shares of face value ₹1 each
  • Post-Offer Paid-Up Equity Share Capital: 2,036,827,612 Equity Shares (remains unchanged as offer is OFS)
  • Promoter Shareholding Pre-Offer (Post-Addendum Transfers): State Bank of India 60.32% (1,231,167,252 shares), Amundi India Holding 36.06% (736,080,140 shares)
  • Promoter Shareholding Post-Offer (Projected): State Bank of India 55.44%, Amundi India Holding 32.56%

Use of Proceeds

The Company will not receive any proceeds from the Offer. The entire proceeds will go to the promoter selling shareholders (State Bank of India and Amundi India Holding), net of their portion of offer-related expenses.

Risk Factors

Business Risks:

1. Extensive and Evolving Regulatory Requirements: Subject to net worth/capital adequacy, TER/BER restrictions, investment norms, governance, risk management, SEBI inspections, cybersecurity, data protection, KYC, AML. Introduction of BER framework and reduction in TER caps directly reduce management fee and TER income.

2. Scheme Underperformance Risk: Significant number of schemes have underperformed relative to benchmarks and peers. As of March 31, 2026, 33.33% of equity/equity-oriented schemes and 10.53% of debt schemes were in bottom quartile. Bottom-quartile schemes accounted for 12.69% of total AUM (₹941.09 billion).

3. Revenue and Profitability linked to QAAUM: QAAUM decline directly reduces management fee income. Large-scale redemptions could force schemes to sell securities at unfavorable prices.

4. Lower Fees on Passive Products: QAAUM from passive products (ETFs and index funds) was ₹4,055.26 billion (32.42% of total mutual fund QAAUM) as of March 31, 2026.

5. Distribution Channel Dependence: Distributes through SBI branch network, YONO, 132,519 MFDs (including 122,460 IFAs, 9,964 national distributors, 95 banks), digital channels, and direct channels. As of March 31, 2026, 57.68% of MAAUM was from direct channels and 42.32% from third parties.

6. Scheme Concentration Risk: Top 5 schemes accounted for 42.57% of total mutual fund QAAUM; top 10 schemes accounted for 59.47% as of March 31, 2026.

7. B-30 Cities Redemption Volatility Risk: B-30 MAAUM was ₹2,772.77 billion (22.82% of total) as of March 31, 2026, with higher redemption volatility potential.

8. Trademark License Risk: Does not own 'SBI' trademark or logo; pays royalty to SBI (5.22% of total expenses in Fiscal 2026, ₹506.32 million).

9. PMS Business Concentration Risk: 49.9% market share of a statutory provident fund institution's equity corpus (as of March 31, 2026). Has received a reallocation notice under fixed income mandate which may materially reduce PMS AUM.

Offer Related Risks:

1. The offer is an Offer for Sale; company receives no proceeds.

2. P/E ratio at upper band (38.16x) is lower than industry peer average (41.64x).

3. Weighted average cost of acquisition for promoters ranges from ₹0.15 to ₹4.35 per share.

Management & Promoters

Promoters: State Bank of India and Amundi India Holding (Amundi Asset Management is also a promoter but holds no shares)

Shareholding Pattern:

  • Pre-Offer (Post-Addendum): SBI 60.32%, Amundi India Holding 36.06%
  • Post-Offer (Projected): SBI 55.44%, Amundi India Holding 32.56%
  • Public Shareholding Post-Offer: Approximately 12.00%

Management Team: Vinaya Datar is identified as Chief Compliance Officer, Company Secretary and Head Legal.

Market & Industry

Industry Overview: The company is the investment manager to SBI Mutual Fund, one of India's largest mutual funds.

Competitors: Not explicitly mentioned in the provided data.

Market Growth Prospects: Not explicitly mentioned in the provided data.

Legal & Compliance

Ongoing Legal Proceedings: Not explicitly mentioned in the provided data.

Regulatory Approvals: The offer is made in compliance with Chapter II of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended. The equity shares will be listed on the main boards of BSE Limited and National Stock Exchange of India Limited (NSE is the designated stock exchange).

Addendum Details (July 10, 2026)

Secondary Share Transfers Pre-IPO:

  • State Bank of India transferred 28,832,748 shares (1.41% of pre-offer capital) to 30 entities at ₹574 per share on July 10, 2026, totaling approximately ₹16,550 million.
  • Amundi India Holding transferred 3,919,860 shares (0.19% of pre-offer capital) to 2 entities at ₹574 per share on July 9, 2026, totaling approximately ₹2,250 million.
  • Total transfers: 32,752,608 shares (1.60% of pre-offer capital).

Revised Offer Size:

  • State Bank of India offer reduced from 128,334,397 shares to 99,501,649 shares.
  • Amundi India Holding offer reduced from 75,374,842 shares to 71,454,982 shares.
  • Total offer size remains 170,956,631 shares.

Offer Structure:

  • Net Offer: 7.59% of post-offer paid-up capital
  • Reservations:
  • SBIFM Employee Reservation: Up to 270,271 shares (0.01%)
  • SBI Employee Reservation: Up to 2,987,076 shares (0.15%)
  • SBI Shareholder Reservation: Up to 13,055,629 shares (7.64%)
  • QIB Portion: Not more than 50% of Net Offer
  • Non-Institutional Portion: Not less than 15% of Net Offer
  • Retail Portion: Not less than 35% of Net Offer

Bid/Offer Programme:

  • Anchor Investor Bid/Offer: July 13, 2026
  • Bid/Offer Opens: July 14, 2026
  • Bid/Offer Closes: July 16, 2026 (UPI mandate end time: 5:00 PM)

Book Running Lead Managers:

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

*SBI Capital Markets Limited is an associate of the Company and State Bank of India and is involved only in marketing of the Offer.

Registrar to the Offer: KFin Technologies Limited