The country's oldest and largest asset manager, backed by State Bank of India and Amundi, opens its ₹11,085–11,675 crore offer for sale on July 14, 2026 — a rare listing that offers a direct read on India's mutual fund growth story.

ISSUE SNAPSHOT

Issue Break-up by Investor Category

Book Running Lead Managers: Axis Capital, BofA Securities, HSBC Securities, ICICI Securities, Jefferies India, JM Financial, Kotak Mahindra Capital, Motilal Oswal and SBI Capital Markets. The entire issue is a pure offer for sale by the promoter selling shareholders, meaning the Company itself will not receive any proceeds from the offer.

COMPANY SNAPSHOT

Incorporated in 1992 and appointed investment manager to SBI Mutual Fund in 1993, SBI Funds Management is India's oldest asset management company — SBI Mutual Fund began operations in June 1987 as the first mutual fund entity outside the Unit Trust of India. The Company became a joint venture in 2004 through Société Générale Asset Management's 37% stake, which passed to Amundi India Holding in 2011. Its promoters today are State Bank of India, Amundi India Holding and Amundi Asset Management.

SBI Funds Management is the largest asset management company in India by quarterly average mutual fund assets under management (QAAUM), with a mutual fund QAAUM of ₹12,509.98 billion and a market share of 15.3% as of March 31, 2026 — a leadership position it has held consistently since March 2021. Including its Portfolio Management Services (PMS) and other advisory mandates, total QAAUM stood at ₹29,461.05 billion. The Company also leads India's passive (ETF and index fund) space with a 27.9% market share, is the largest PMS provider with a 39.7% market share, and holds a 28.2% share of the nascent Specialised Investment Fund (SIF) segment.

Business Snapshot

FINANCIAL PERFORMANCE

Revenue from operations grew at a CAGR of 27.73% between Fiscal 2024 and Fiscal 2026, driven chiefly by growth in asset management fees, while net profit expanded at a CAGR of 21.65% over the same period. The elevated EBITDA margin in FY2024 (101.05%) reflected higher non-operating and treasury income that year rather than core operating performance. The Company allotted bonus shares in a 3:1 ratio on December 19, 2025, which increased the equity share capital base and affected per-share metrics across the years shown.

QAAUM Composition & Growth

COMPETITIVE STRENGTHS

●  Largest mutual fund AMC in India by QAAUM, benefiting from strong operating leverage and the lowest cost-to-QAAUM ratio among the top 10 AMCs.

●  India's largest PMS provider (39.7% share) and one of the largest SIF platforms (28.2% share), diversifying revenue beyond core mutual funds.

●  Market-leading SIP franchise, with a large majority of live SIPs active for over three years, reflecting strong investor stickiness.

●  Dual parentage — SBI's pan-India distribution and brand trust combined with Amundi's global asset management expertise and international networks.

●  Process-driven investment team of 71 professionals with an average industry experience of 17.8 years, supporting a track record of top-quartile scheme performance and product innovation such as India's first Silver ETF.

●  Deep, well-diversified pan-India distribution across direct and third-party channels, with the highest B-30 (beyond top-30 cities) AUM share among leading peers.

●  Robust digital ecosystem — the InvesTap app, integration with SBI's YONO platform, and B2B tools (Partner and Mitra) supporting scalable, digitally enabled growth.

KEY BUSINESS STRATEGIES

●  Deepen retail penetration in tier 2, tier 3 and rural markets by leveraging its wide distribution network and bank-affiliated sales force.

●  Strengthen digital capabilities — AI-powered tools, financial planning calculators and enhanced distributor analytics.

●  Expand product offerings across passive funds, PMS, AIFs and the newly launched SIF platform.

●  Capture international opportunities through both inbound flows (via GIFT City / IFSC) and outbound flows (leveraging the Liberalised Remittance Scheme and Overseas Portfolio Investment framework).

PEER COMPARISON (FY2026, CONSOLIDATED)

Note: P/E ratios in the RHP are computed on closing market prices as of July 6, 2026 for listed peers, and on the IPO price band for SBI Funds Management. All figures above are revenue, EPS, RoNW and NAV as reported in the offer documents.

SHAREHOLDING PATTERN

The entire offer comprises an offer for sale of up to 12,83,34,397 equity shares by State Bank of India and up to 7,53,74,842 equity shares by Amundi India Holding. Post-issue, promoter holding reduces from 98.19% to 88.19%, while public shareholding rises to 11.81%.

KEY RISK FACTORS

●  QAAUM-linked revenue risk: A significant share of revenue and profitability is tied to quarterly average AUM; market declines, redemptions or depreciation could directly reduce management fee income.

●  Capital market and liquidity risk: Adverse capital market conditions could reduce AUM and increase redemption pressure, particularly affecting equity and debt/money-market schemes.

●  Scheme concentration risk: The top five schemes accounted for 42.57% of total mutual fund QAAUM, and the top ten schemes generated 46.45% of MF scheme revenue as of March 31, 2026.

●  Regulatory risk: The asset management business is subject to extensive and evolving SEBI regulations; adverse regulatory actions could affect operations and reputation.

●  B-30 cities redemption volatility: Investors in beyond-top-30 cities may show higher redemption volatility during downturns; changes to related TER incentives could also affect revenue.

●  Fee compression risk: The Base Expense Ratio framework, reductions in TER caps, and a rising share of lower-fee passive schemes within AUM could pressure margins over time.

ABOUT THIS NOTE

This note is compiled from the Company's Red Herring Prospectus and the IPO Note published by Axis Capital Limited (Book Running Lead Manager) for investor education purposes. It does not constitute research, investment advice, or a recommendation to buy, sell or hold any security. Readers should refer to the Red Herring Prospectus for complete information and risk factors, and consult a qualified financial or investment advisor before making any investment decision.