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Salient features of the IPO:

* SBI Funds Management Ltd. (SBIFML), was incorporated in 1992 and received SEBI's approval to act as the asset manager for SBI Mutual Fund in 1993. Since then, the company has grown to become India's largest asset management company (AMC) by quarterly average mutual fund assets under management (QAAUM). As of March 31, 2026, it managed mutual fund QAAUM of Rs. 12,50,998cr, representing a market share of 15.3%, and has consistently retained the top position since March 2021, according to the RHP. Including its Portfolio Management Services (PMS) and other advisory mandates (collectively referred to as "Alternates"), the company's total QAAUM stood at Rs. 29,46,105cr as of March 31, 2026.

* The IPO solely comprises of OFS (Rs. 9,317.2 - 9,813cr). Company will not be utilizing any proceeds from the OFS portion.

* Prior to the IPO, SBI and Amundi India Holding undertook a pre-IPO secondary stake sale, with SBI divesting 2.88cr shares for approximately Rs. 1,655cr and Amundi India Holding selling 39.19 lakh shares for around Rs. 225cr. As these shares were sold before the public issue, they have been excluded from the OFS, resulting in a reduction in the overall IPO size. Consequently, the issue size has been revised downward from (Rs. 11,102.15 - 11,692.91cr) to Rs. (9,317.20 - 9,813.00cr), representing a reduction of approximately 1.6% of the company's equity capital.

Key competitive strengths:

* Largest AMC in India in terms of mutual fund assets under management

* Market-leading SIP franchise with a 15.5% market share by live SIP count and strong investor stickiness

* Dual Parentage - Integration of State Bank of India’s domestic franchise with Amundi’s global expertise

* Well-diversified, Pan-India multi-channel distribution infrastructure

* Disciplined governance and risk management underpinning long-term stewardship

Business strategy:

* Enhancing retail penetration through distribution

* Expanding digital capabilities for investor engagement

* Expansion of product offerings and investment solutions

* Capture international opportunities through structurally advantaged global positioning

* Increase the exports and focus on new high growth end-user industries

Risk and concerns:

* Adverse market or economic conditions may affect the business

* Business is subject to extensive regulation

* Future scalability and profitability of the new products cannot be assured

* Competition

Valuation Overview and IPO Rating

SBIFML is the largest AMC in India by QAAUM, with a 15.3% market share as of March 31, 2026. As one of the country's oldest and most established AMCs, the company has consistently delivered strong growth in both revenue and profitability. At the upper price band, the issue is valued at a P/QAAUM of 9.3% and a P/E of 38.1x (based on FY26 EPS of Rs. 15.1), indicating a fair valuation relative to peers. However, its scale provides significant operating leverage, reflected in the industry's lowest cost-to-income ratio and lowest operating cost as a % of QAAUM. The company also enjoys deep penetration in B-30 cities, supported by its extensive distribution network and leadership in Tier II and Tier III markets. Additionally, its strategic partnership with Amundi enhances its investment capabilities and international reach, while favorable structural trends such as increasing financialization of household savings, rising SIP adoption, and growing mutual fund penetration are expected to support long-term growth. Considering its market leadership, strong profitability, operational efficiency, and robust long-term growth prospects, we assign “SUBSCRIBE” rating to the issue

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SEBI Registration no.: INZ 000160131