NEW DELHI: SBI Funds Management, which is all set to launch one of the biggest IPOs of 2026, has generated strong interest in the unofficial grey market. According to market platform IPOwatch, unlisted shares of SBI Funds Management are commanding a grey market premium (GMP) of Rs 106 per share, indicating a potential listing gain of 18.5% over the upper end of the price band.
The asset manager aims to raise Rs 9,795 crore through the IPO, which will open on Tuesday. The issue size was earlier planned at Rs 11,693 crore, but was reduced after SBI last week raised Rs 1,655 crore from a group of investors.
Backed by its joint promoters, State Bank of India (SBI) and Amundi Asset Management, the company benefits from SBI's extensive domestic distribution network and Amundi's global asset management expertise, said Anand Rathi Research Team in a note.
“At the upper price band, the 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 116,913.9 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.
SBI Funds has fixed the IPO price band at Rs 545–Rs 574 per equity share. The public issue is entirely an Offer for Sale (OFS) of 20.37 crore equity shares.
Analysts at Ventura said that SBI Funds benefits from a strong SIP franchise, with 16.21 million live SIPs, monthly SIP inflows of around Rs 4,060 crore and SIP assets under management of nearly Rs 1.73 lakh crore as of March 31, 2026. They stated that the partnership with Amundi strengthens SBI AMC’s investment, technology and international capabilities.
As per Ventura, SBI Funds’ Key strengths include its leading market position, strong SBI brand, diversified product portfolio, large retail customer base, recurring fee income, wide distribution reach and access to Amundi’s global investment and technology capabilities.
Incorporated in 1992, SBI Funds is India's largest asset management company (AMC) by mutual fund Quarterly Average Assets Under Management (QAAUM), managing mutual fund QAAUM of Rs 1,250,998 crore with a 15.3% market share as of March 31, 2026.
SBI Mutual Fund, which on Monday said it will focus on expanding its institutional fund management business. “Beyond mutual funds which are bread and butter, we would like to grow substantially into PMS and expand international investment…with Amundi, we will penetrate markets across the world…So, PMS, international and alternates will be our priority in addition to mutual funds,” SBI Mutual Fund MD and CEO Debasish Mishra said ahead of the IPO.