SBI Funds Management IPO: GMP signals 15% listing gains; 10 key things to know from RHP ahead of issue launch on Tuesday

SBI Funds Management IPO: The initial public offering of SBI Funds Management is set to open for public subscription on Tuesday, 14 July, and will remain so until Thursday, 16 July. The book build issue, with a price band at ₹545 to ₹574 per share, is entirely an offer for sale.

Meanwhile, the grey market is showing tepid interest in the issue as the grey market premium (GMP) of SBI Funds Management shares on Friday morning was ₹84, suggesting the stock could list at a 15% premium over the issue price.

As the issue is scheduled to conclude on Thursday, share allotment is expected to be finalised on the next business day on Friday, 17 July. SBI Funds Management shares will list on the NSE and the BSE on Tuesday, 21 July.

SBI Funds Management IPO: 10 things from RHP

Ahead of the share sale coming Tuesday, here are the 10 key things that investors should know about SBI Funds Management IPO from the Red Herring Prospectus (RHP):

1. SBI Funds Management IPO details

SBI Funds Management IPO is entirely an offer for sale (OFS) of up to 20,37,09,239 shares to raise ₹11,693 crore. State Bank of India and Amundi India Holding are the promoter selling shareholders in the OFS. SBI is selling 12,83,34,397 shares, while Amundi India Holding is offloading 7,53,74,842 shares in the OFS.

2. SBI Funds Management IPO book-running lead managers and registrar

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, and SBI Capital Markets Limited are the book-running lead managers of the issue. KFin Technologies Limited is the registrar of the SBI Funds Management IPO.

3. Objects of the offer

As the issue is an OFS, the company will not receive any proceeds from the share sale. However, the company expects that listing of its shares will enhance its visibility and brand image and provide a public market for the shares in India.

4. SBI Funds Management promoters

As per the RHP of the issue, State Bank of India, Amundi India Holding, and Amundi Asset Management are the promoters of SBI Funds Management. Promoters hold 200 crore shares of face value of ₹1 each, constituting 98.19% of the issued, subscribed and paid-up share capital and 97.99% of the pre-offer share capital of the company on a fully diluted basis.

5. Management of the company

The company has 10 directors, comprising two executive directors, three non-executive directors and five independent directors, including one woman independent director.

Challa Sreenivasulu Setty is the chairman and non-executive director, while Debasish Mishra is the Managing Director and Chief Executive Officer.

6. SBI Funds Management business

The company claims to be the largest and oldest asset management company (AMC) in India by quarterly average mutual fund assets under management (QAAUM), with QAAUM of ₹12,50,998 crore and a mutual fund market share of 15.3% as of March 31, 2026.

Including its portfolio management services (PMS) and other advisory mandates (collectively with PMS, Alternates), its total QAAUM was ₹29,46,105 crore as on 31 March 2026.

7. SBI Funds Management's financial performance

The company's total revenue from operations was ₹2,690.6 crore in FY24, which increased to ₹3,597.8 crore in FY25 and to ₹4,389.5 crore in FY26. Its profit was ₹2,072.8 crore in FY24, ₹2,540.2 crore in FY25, and ₹3,067.4 crore in FY26.

8. Mutual fund industry growth outlook

The issue RHP reveals that the Indian mutual fund industry is experiencing a significant shift, with smaller cities, known as beyond 30 (B-30) cities, emerging as key growth drivers alongside the established top 30 (T-30) cities.

The mutual fund industry in India is driven by India's strong economic growth, increasing financial awareness, financialization of savings, enhanced distribution channels, digitalisation, and government initiatives.

9. SBI Funds Management's listed peers

ICICI Prudential Asset Management Company Limited, 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 are some of the listed peers of the company.

10. Key risks

The company is subject to strict regulatory requirements and extensive regulation by SEBI and other regulatory authorities. Any regulatory changes can impact the company's business.

The company has strong competitors. Competition from other asset management companies and alternative investment products could adversely affect its market share, pricing, and profitability.

Disclaimer: This article is for educational purposes only and does not constitute investment advice. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.