LIVE: SBI Funds Management steady after smart debut; lists at 7% premium to issue price

SBI Funds Management IPO Listing, share price LIVE updates: The share price of SBI Funds Management closed the first day of trade 0.5% lower at Rs 610.15 on the NSE. However, it settled 6.3% higher than the listing price of Rs 613.30.

Th stock surged more than 2% to touch the day’s high of Rs 624.95 from opening price in today’s trade but came off that price.

SBI Funds Management IPO Listing, share price LIVE updates: New SIP registrations increased to 9 million in FY26 from 3.7 million in FY23, with SBI AMC’s market share in new registrations at 12.5%. Around 68% of new SIP registrations originated from B-30 geographies, and more than 97% of live SIPs had a persistency of over three years, indicating stronger customer stickiness.

SBI Funds Management IPO Listing, share price LIVE updates: As of Q1FY27, SBI Funds Management managed Rs 12.5 lakh crore across more than 120 schemes, excluding domestic FoFs. The company offers 37 schemes across the equity and hybrid categories, alongside 21 ETFs and 21 index funds. Among large AMCs, SBIAMC has the least concentrated scheme mix, with only one scheme accounting for over 10% of AUM versus 3-4 schemes for key peers. Equity AUM is also more diversified by category, with the top-3 categories contributing 30% of equity AUM, compared with 50% for HDFC AMC and Nippon Life India Asset Management and 35% for ICICI AMC.

SBI Funds Management IPO Listing, share price LIVE updates: As of June 2026, overall MF QAAUM stood at Rs 12.57 lakh crore, having compounded at a 19% CAGR since FY21. Over the same period, equity QAAUM expanded at a faster 33% CAGR, reaching Rs 6.1 lakh crore as of June 2026, lifting the equity share of QAAUM to 48.8% from 27.3% in FY21. SBI AMC’s overall QAAUM market share has increased over the years from 13.8% in FY20 to 15.1% in Q1FY27. The company’s equity QAAUM market share increased significantly to 13.2% by FY25 from 9.4% in FY20, after which it has declined to 12.65% in Q1FY27.

SBI Funds Management IPO Listing, share price LIVE updates: As of FY26, SBI Funds Management is the industry’s largest AMC by MF QAAUM, with a 15.3% market share. Its mutual fund QAAUM compounded at a robust 20% CAGR over FY21-FY26. Beyond mutual funds, SBI AMC also manages PMS, AIF and advisory mandates, taking total AUM across these businesses to Rs 29 lakh crore. Non-mutual fund AUM also recorded healthy growth over the period, increasing at 17% CAGR to reach Rs 16.95 lakh crore as of FY26.

SBI Funds Management IPO Listing, share price LIVE updates: “We expect a 16% CAGR in overall MF AQAAUM over FY26-FY29E, driven by 17% equity AQAAUM CAGR. Revenue and EBITDA are expected to grow at 14% and 15% CAGR, respectively. With a dividend payout ratio of more than 50%, RoEs are likely to remain above 40%. SBIAMC is one of the strongest franchises in the AMC industry and is well positioned to benefit from industry tailwinds,” said Equirus Securities.

SBI Funds Management IPO Listing, share price LIVE updates: At this hour, SBI Funds Management shares were trading at Rs 622.30 on the BSE and Rs 622.25 on the NSE. The stock was up 2.02% and was trading 1.46% above its listing price. Compared with its IPO issue price of Rs 574, the stock was trading 48 points higher, delivering a gain of 8.41% for investors who were allotted shares in the public issue.

SBI Funds Management IPO Listing, share price LIVE updates: “SBI Funds Management’s listing with a 9% gain on debut is broadly in line with our expectation of moderate listing gains and reflects a fair start for an issue that priced conservatively relative to peers even at 38.1x FY26 P/E. With a dominant 15.3% QAAUM market share, industry-leading cost efficiency, and a 51% ROE, we believe the stock’s re-rating potential lies ahead, driven by structural tailwinds in financialisation of savings and SIP penetration. We maintain our constructive long-term view on the stock,” said Sameer Sawant, Research Analyst at Mirae Asset Sharekhan.

SBI Funds Management IPO Listing, share price LIVE updates: SBI AMC combines SBI’s 23,000+ branch network, over 100 million YONO users and 132,519 MF distributors, creating one of the industry’s strongest distribution platforms. SBI’s MF AUM accounts for 4% of industry equity AUM and mobilised over Rs 25,000 crore of net inflows in FY25. Around 96% of the AUM mobilised through SBI is managed by SBI AMC, providing strong and consistent flows.

SBI Funds Management IPO Listing, share price LIVE updates: The brokerage house Equirus Securities finds the company’s valuation attractive at 30x FY28 EPS. This led the brokerage house to initiate coverage on the AMC with a ‘LONG’ rating and a 12-month target price of Rs 675, which is based on a valuation of 35x FY28 EPS.

SBI Funds Management IPO Listing, share price LIVE updates: Emkay Global initiated coverage on SBI AMC with a ‘Buy’ rating and a price target of Rs 750, implying 31% upside from the IPO allotment price of Rs 574.

The brokerage said that its positive view rests on three pillars:

1) SBI’s brand and distribution, coupled with significant under-penetration of SBI MF within the SBI Bank channel (5.5 million customers vs 21 million salary package accounts), position SBI AMC to benefit from India’s long-term mutual fund growth story, particularly in Bharat (B-30 towns and villages).

2) The sustained shift in asset mix toward higher-yielding assets such as Equity and Alternate Investments (AIF/PMS) is likely to support revenue yields.

3) Economies-of-scale-led operating leverage is expected to drive 17% EBITDA CAGR over FY26-29. As the savings and investment needs of Indians evolve, the middle class is increasingly embracing mutual funds as its core investment vehicle, and SBI AMC has all the ingredients to become “the asset manager to every Indian,” just as its parent has become “the banker to every Indian”.

SBI Funds Management IPO Listing, share price LIVE updates: Brokerage house Emkay has initiated coverage on SBI Funds Management with a ‘Buy’ rating and a target price of Rs 750, indicating an upside potential of around 31% from the IPO issue price.

In its report, Emkay said, “We initiate coverage on SBI AMC with BUY and Jun-27E TP of Rs750, implying 31% upside from the IPO allotment price and valuing the company at an FY28E PER of 39x. Our target multiple is broadly in line with large peers such as ICICIAMC and NAM.”

SBI Funds Management IPO Listing, share price LIVE updates: “Rather than focusing only on listing gains, the IPO offers better long-term value for investors with a 2–3 year investment horizon. The business is well placed to benefit from India’s gradual shift of household savings towards financial assets, along with the increasing penetration of SIPs across smaller cities and towns,” said Prasenjit Paul, Fund Manager at 129 Wealth & Head of Research at Paul Asset.

“Rather than focusing only on listing gains, the IPO offers better long-term value for investors with a 2–3 year investment horizon. The business is well placed to benefit from India’s gradual shift of household savings towards financial assets, along with the increasing penetration of SIPs across smaller cities and towns,” said Prasenjit Paul, Fund Manager at 129 Wealth & Head of Research at Paul Asset.

Ahead of the listing, the Grey Market Premium (GMP) for SBI Funds Management stood at around Rs 95.5, indicating an expected listing price of nearly Rs 669.5, or about 16.6% above the IPO issue price of Rs 574 per share.

However, the stock debuted at a lower price than these unofficial market estimates, resulting in a more moderate listing premium than what the grey market had suggested.

SBI Funds Management shares made their stock market debut on July 21, listing at a premium over the IPO issue price of Rs 574 per share.

The stock opened at Rs 613.30 on the NSE, a 6.85% premium, while it debuted at Rs 610 on the BSE, a 6.27% premium. Investors who received an IPO allotment saw a listing gain of around 6–7%.

The shares of SBI Funds Management were up 6.85% in the pre-open at Rs 613.30 on the NSE. This is Rs 39.30 higher than the issue price.

SBI Funds Management is India’s oldest non-UTI asset management company, incorporated in 1992 and serving as the investment manager to SBI Mutual Fund since 1993. The company is promoted by State Bank of India and Amundi, Europe’s largest asset manager, providing a combination of SBI’s extensive domestic banking franchise and Amundi’s global investment expertise and international distribution capabilities.

SBI Funds Management has reported growth in its financial performance over the past three years. Its total income increased from Rs 3,426 crore in FY24 to Rs 4,976 crore in FY26. During the same period, the company’s profit after tax rose from Rs 2,073 crore to Rs 3,067 crore. In FY26, net profit was about 21% higher than the previous year.

Also read: SBI Funds Management IPO listing today: How India’s top 5 AMCs compare on AUM, market share, and growth

SBI Funds also maintains leadership across passive assets, PMS and B30 mutual fund assets, supported by a diversified product portfolio, an omnichannel distribution network and a retail investor base of 18.0 million unique investors.

“At the upper price band company is valuing at P/E at 38.1x and EV/EBITDA of 33.6x with to its FY26 earnings and market cap of Rs 1,16,913.9 crore post issue of equity shares. We believe that the IPO is fully priced and recommend a ‘Subscribe’ rating to the IPO,” said Anand Rathi Research.

The SBI Funds Management IPO was offered in a price band of Rs 545-574 per share. The basis of allotment was finalised on July 18, after the public issue closed following a strong response from investors.

SBI AMC’s asset-light business model has delivered strong operating leverage, with revenue growing at a 25% CAGR over FY21-FY26, well ahead of the 15% operating expense CAGR and 13% employee cost CAGR. Consequently, EBITDA/PAT margins expanded to 79%/70%. Excluding other ETFs, FY26 net profit yield stood at 35 basis points, in line with ICICI AMC and above HDFC AMC’s 33 bps.

SBI Funds Management is India’s largest AMC, with Rs 12.6 lakh crore of MF QAAUM and a 15.1% market share, spanning leadership across active and passive strategies. Well poised to capitalise on India’s financialization opportunity, its equity QAAUM grew at 33% CAGR over FY21-June 2026, with market share rising to 12.7% from 10.2%.

“Supporting this leadership is SBI’s unmatched distribution network of 23,000+ branches and 100 million+ YONO users. Around 35.5% of equity MAAUM is sourced through Associate Distributors, while 96% of MF AUM mobilised through SBI is managed by SBI AMC. SBI mobilised Rs 27,000 crore of net inflows in FY25,” said Equirus Securities in an IPO note.

The SBI Funds Management IPO received a strong response from investors during the three-day bidding period. The issue was subscribed 41.73 times overall. The Qualified Institutional Buyers (QIB) portion saw the highest demand with 140.11 times subscription, while the Non-Institutional Investor (NII) category was subscribed 22.51 times. The retail investor portion was subscribed 3.76 times.

Like other asset management companies, SBI Funds Management’s business depends heavily on the level of assets under management. A sharp decline in the stock market or higher investor redemptions can reduce AUM, which may affect the company’s revenue and profitability.

The company also operates in a highly competitive industry where several domestic and global asset managers compete for investor money. Changes in investor preferences, increasing demand for passive investment products or pressure on fund management fees could influence future growth.

Another factor to watch is the regulatory environment. Any changes in SEBI regulations relating to mutual funds, expense ratios, disclosures or distribution practices may have an impact on the company’s operations.

The wait is finally coming to an end for investors. SBI Funds Management, India’s largest asset management company, is set to make its stock market debut on Dalal Street today. The company’s shares are scheduled to list on both the NSE and BSE at 10:00 am, marking the culmination of one of the most closely watched IPOs of the year.

“At the upper price band of INR 574, SBIFML is valued at approximately 38x FY26 earnings, implying a discount to HDFC AMC, ICICI Prudential AMC, and Nippon India AMC, while trading at a premium to UTI AMC and Aditya Birla Sun Life AMC. The discount reflects its lower revenue yield of approximately 35 bps of AUM versus approximately 44 bps to 52 bps for HDFC AMC and ICICI Prudential AMC, driven by a higher mix of passive products and institutional PMS mandates. We believe the valuation appropriately captures the current business mix while offering meaningful upside as the equity mix improves,” said Deven Choksey Research in its IPO note.

Equirus initiated coverage with ‘Long’ rating and a March 2027 target of Rs 675. They believe that with a dividend payout ratio of >50%, RoEs are likely to remain above 40%. SBIAMC is one of the strongest franchises in the AMC industry and is well positioned to benefit from industry tailwinds. Initiate coverage with LONG. Key risks: Adverse market trends, scheme underperformance and regulatory risks.

“At the upper band of INR 574, the issue is valued at a P/E of 38.1x on FY26 EPS of INR 15.06 (P/B of 19.6x), broadly in line with or at a discount to larger listed peers, supported by its dominant franchise and superior return ratios.” said Arihant Capital in its IPO note.

Like other mainboard IPOs, the SBI Funds Management issue has separate allocations for different classes of investors. The allocation follows SEBI’s regulations governing public offerings.

Up to 50% of the net offer is reserved for Qualified Institutional Buyers (QIBs), while at least 15% is set aside for Non-Institutional Investors (NIIs). The NII category includes both small and large high-net-worth investors.

At least 35% of the issue is reserved for retail investors. Each category competes only within its own allocation, which means retail applicants are not competing directly with institutional investors for allotment.

Also read: SBI Funds Management listing today: Is India’s largest AMC ‘Overpriced’ or a ‘Long-term Buy’? Market experts weigh in

One of the unique features of this IPO is the separate reservation for eligible shareholders of State Bank of India. Around 1.3 crore shares have been reserved under this category, allowing eligible SBI shareholders to apply separately from the general retail category.

To qualify, investors needed to hold SBI shares as of the date mentioned in the Red Herring Prospectus and fulfil the required PAN and demat account conditions. Applications under the shareholder category are subject to a maximum investment limit of Rs 2 lakh.

Apart from the shareholder reservation, the IPO also includes an employee reservation. Eligible employees of SBI Funds Management can apply under this category and receive a discount of Rs 54 per share compared with the final issue price.

Also read: SBI Mutual Fund lists today: SBI offloads 4.89% stake for Rs 5,711 crore — Check key details