Management

• Debasish Mishra: Managing Director & Chief Executive Officer (MD & CEO)
• Denys Charles Jean Marie Fougeroux De Campigneulles: Executive Director & Deputy Chief Executive Officer
• Devinder Pal Singh: Chief Investment Officer – Equity
• Inderjeet Ghuliani: Chief Financial Officer (CFO)
• Vinaya Datar: Chief Compliance Officer, Company Secretary & Head – Legal
• Challa Sreenivasulu Setty: Chairman (Non-Executive Nominee Director)
• Debasish Mishra: Managing Director & Chief Executive Officer
• Ashwini Kumar Tewari: Non-Executive Director
• Olivier Philippe Mariée: Non-Executive Director
• Moiz Mohsin Miyajiwala: Independent Director
• Sudha Krishnan: Independent Director
• Shekhar Bhatnagar: Independent Director
• Hemant Ratnakar Adarkar: Independent Director
• Sanjay Prakash: Independent Director

Use of Proceeds

The proposed IPO is entirely an Offer for Sale (OFS), with no fresh issue of equity shares by the company. Under the Offer, the Promoter Selling Shareholders will sell up to 203,709,239 equity shares of face value Rs.1 each. Since the issue is purely an OFS, SBI Funds Management will not receive any proceeds from the IPO. The entire proceeds, after deducting the respective offer-related expenses and applicable taxes, will accrue to the Promoter Selling Shareholders.

The primary objective of the IPO is to achieve the listing of SBI Funds Management's equity shares on the stock exchanges, thereby creating a public market for the company's shares. The listing is also expected to enhance the company's visibility, strengthen its brand image, improve corporate governance standards and provide greater liquidity to existing shareholders. Additionally, being a listed entity is expected to increase investor confidence and further strengthen the company's position in the rapidly growing Indian asset management industry.

Competitive Strengths

Largest asset management company in India in terms of mutual fund assets under management, benefitting from strong operating leverage driven by scale and growth SBI Funds Management is the largest asset management company in India by mutual fund Quarterly Average Assets Under Management (QAAUM), managing Rs.12.51 lakh crore with a 15.3% market share as of March 31, 2026. Its scale provides significant operating leverage by spreading fixed costs across a larger asset base, resulting in an operating expense ratio of just 0.08%, the lowest among the top 10 AMCs. The company further strengthens its investment capabilities through an in-house research platform covering over 450 listed companies and more than 250 fixed-income issuers. Supported by rising mutual fund penetration, increasing financialisation of household savings and favourable demographic trends, SBI Funds Management is well positioned to sustain profitable growth while reinforcing its leadership in the Indian asset management industry.

India’s largest portfolio management services provider by PMS and advisory assets under management, with a 39.7% market share in the PMS segment, and one of India’s largest Specialized Investment Fund platforms, with an AUM of Rs.29.95 billion representing a 28.2% market share of the SIF segment as of March 31, 2026 The company operate India’s largest institutional asset management platform, spanning PMS, AIFs, and its recently launched SIF platform. The company is India’s largest PMS manager by assets under management, with a market share of 39.7% of the PMS segment as of March 31, 2026. The SIF segment had total net AUM of Rs.106.2 billion as of March 2026, and “Magnum SIF – offered by SBI Mutual Fund” had an AUM of Rs.29.95 billion, representing a market share of 28.2% of the SIF segment, making it one of the largest SIF platforms in India. Complementing its PMS leadership, the AIF business had QAAUM of Rs.65.65 billion as of March 31, 2026, having grown at a CAGR of 29.18% between March 31, 2024, and March 31, 2026.

Market-leading SIP franchise with a 15.5% market share by live SIP count and strong investor stickiness SBI Funds Management has built one of India's strongest Systematic Investment Plan (SIP) franchises, holding a 15.5% market share by live SIP count as of March 31, 2026. The company managed 16.21 million live SIPs, with an active SIP book of Rs.4,127 crore, monthly SIP inflows of Rs.4,059 crore and SIP AUM of Rs.1.73 lakh crore. Its innovative SIP offerings, including multi-scheme mandates, step-up SIPs, flexible investment frequencies and a minimum investment of Rs.250, have significantly enhanced investor participation. The franchise also demonstrates remarkable investor stickiness, with 15.87 million of the live SIPs remaining active for over 37 months, reflecting strong customer loyalty, sustained investor confidence and the company's ability to generate stable, recurring inflows across market cycles.

Dual Parentage - Integration of State Bank of India’s domestic franchise with Amundi’s global expertise The Company benefits from dual parentage that combines SBI’s extensive domestic distribution franchise with Amundi’s global asset management capabilities, creating a structurally differentiated platform that is difficult to replicate. Integration with the YONO platform provides seamless digital investment journeys for SBI’s 100+ million YONO users as at March 31, 2026, while the Jan Nivesh SIP initiative, designed for SBI’s mass-market customers, had mobilized over 46,928 SIP accounts, of which 43,593 SIP accounts were sourced through YONO as at March 31, 2026. The relationship with Amundi has enabled the Company to build an international business comprising India-focused mandates of Rs.184,363.42 million, UCITS India-focused funds of Rs.80,306.29 million distributed across Europe, the Middle East, Asia and South America, and advisory services representing Rs.149,653.07 million of India allocations within Amundi’s global emerging market strategies as at March 31, 2026, resulting in total co-managed and advisory mandates of Rs.257,487.67 million.

Process-driven investment framework with demonstrated track record of product innovation and consistent investment performance SBI Funds Management follows a process-driven, team-based investment framework that emphasizes institutional processes over individual fund managers, ensuring consistency across market cycles while reducing key-person risk. As of March 31, 2026, the company had 71 investment professionals with an average tenure of 9 years and 17.8 years of industry experience. Its disciplined investment process combines top-down macroeconomic analysis with bottom-up fundamental research in equities and a safety-liquidity-returns framework in fixed income. The company has also demonstrated a strong track record of product innovation, including the launch of India's first Silver ETF. Investment performance remains robust, with 28.60% of equity schemes and 35.87% of hybrid schemes delivering top-quartile five-year performance, supporting investor confidence, retention and sustained fund inflows.

Well-diversified, Pan-India multi-channel distribution infrastructure SBI Funds Management has built one of the largest and most diversified distribution networks in the Indian asset management industry, providing extensive reach across urban, semi-urban and rural markets. As of March 31, 2026, its distribution platform comprised 132,519 mutual fund distributors, including 122,460 Independent Financial Advisors (IFAs), 9,964 National Distributors (NDs) and 95 banking partners, supported by SBI's branch network and digital channels such as InvesTap and YONO. The company has a presence across 98.19% of India's PIN codes and maintains the largest B-30 AUM among the top 10 AMCs, with B-30 assets accounting for 22.82% of total mutual fund MAAUM, well above the industry average of 18.2%. This diversified omnichannel distribution platform enables strong retail penetration, wider customer acquisition and sustainable long-term asset growth.

Robust technology infrastructure and data-driven investor engagement The Company has built a robust technology infrastructure that supports scalable operations, secure transaction processing and personalized investor experiences. During FY 2026, it processed 1.31 million transactions monthly, with 94.25% executed digitally,supported by a hybrid cloud architecture, disaster recovery capabilities. The company is ISO/IEC 27001:2022 certified, reflecting its alignment with globally recognized information security management standards. The InvesTap mobile application had 3.97 million registered users and 3.39 million active users as at March 31, 2026, reflecting an activation rate of 57.17%, and had been downloaded 5.8 million times. The scale of the Company's direct digital platform is complemented by its B2B digital ecosystem, comprising 46,591 active Partner App users (external distributors) and 30,930 active Mitra users (SBI sales force) as at March 31, 2026, creating a digitally enabled distribution network spanning both direct and intermediary channels.

Disciplined governance and risk management underpinning long-term stewardship The Company's senior management team brings deep financial services expertise and institutional continuity, providing strategic leadership. The Company is a signatory to the UN Principles for Responsible Investment and participates in the Climate Action 100+ initiative, serving as the lead engaging investor for five of the seven Indian companies identified as focus companies under the initiative. In FY 2025, the Company conducted 274 corporate engagements on governance practices, ESG disclosures and sustainability matters, and assessed 107 companies under its internal ESG framework.

Peer Comparison

Key Risks & Concerns

Regulatory and Compliance Risks SBI Funds Management operates in a highly regulated environment governed by SEBI and other financial regulators. Any changes in regulations relating to mutual funds, expense ratios, product structures, distribution practices, disclosure standards or overseas investments could materially affect business operations and profitability. Non-compliance with regulatory requirements or evolving governance standards may result in penalties, restrictions on business activities and reputational risks, impacting the company's long-term growth prospects.

QAAUM Revenue Reduction Risk A significant portion of the Company's revenues and profitability is linked to its quarterly average assets under management (QAAUM). Any material decline or change in the composition of QAAUM due to market movements, redemptions, market depreciation or other factors could directly reduce management fee income and thus may impact profitability and financial performance

Market Volatility and Fluctuations in Assets Under Management (AUM) SBI Funds Management's revenue is directly linked to the level of assets under management, making its financial performance sensitive to movements in equity and debt markets. Adverse market conditions, prolonged corrections, geopolitical uncertainties or macroeconomic disruptions can reduce investor confidence, trigger redemption pressures and lower average AUM. Since management fees are primarily based on AUM, sustained market volatility could adversely affect revenue growth, profitability and operating margins despite the company's diversified product portfolio.

Intense Competition and Fee Compression The Indian asset management industry remains highly competitive with participation from domestic and global AMCs, increasing penetration of passive investment products and the emergence of new investment platforms. Growing investor preference for low-cost ETFs and index funds, along with regulatory focus on reducing expense ratios, may continue to pressure management fees. Failure to maintain competitive investment performance, product innovation or distribution strength could impact market share, net inflows and long-term earnings growth.

B-30 Cities Redemption Volatility Risk Investors in B-30 cities may exhibit higher redemption volatility during market downturns compared to investors in T-30 cities. In addition, any adverse changes to the regulatory framework providing additional TER allowances for B-30 mobilisation could adversely affect the Company's AUM, revenues and results of operations.

Outlook and Valuation

SBI Funds Management is well positioned to benefit from the long-term structural growth of the Indian asset management industry, supported by rising financialisation of household savings, increasing mutual fund penetration, expanding SIP adoption and growing participation from investors across Tier II, Tier III and rural markets. The company's leadership position in mutual fund QAAUM, strong retail franchise, extensive distribution network covering 98.19% of India's PIN codes, market-leading SIP platform and continued focus on passive products, alternative investments and digital channels provide multiple growth levers. Its process-driven investment framework, disciplined risk management and robust product innovation, including leadership in ETFs and Specialized Investment Funds (SIFs), are expected to support sustained AUM growth and healthy profitability. The company also benefits from the combined strengths of SBI's domestic franchise and Amundi's global investment expertise, creating a strong competitive moat.

SBI Funds Management provides investors with exposure to India's largest asset management company, backed by a capital-light business model, recurring fee-based income and strong return ratios. The company is well positioned to benefit from structural industry drivers, including rising financialisation of household savings, increasing mutual fund penetration, accelerating SIP adoption and expanding participation from retail investors. Its diversified product portfolio, leadership across active and passive funds, extensive SBI-backed distribution network and proven execution capabilities are expected to support steady AUM growth and sustainable earnings over the medium to long term. While earnings remain sensitive to market volatility, changes in investor sentiment and regulatory revisions to total expense ratios (TER), the company's scale and strong franchise provide resilience. At the upper price band of Rs.574, the issue is valued at a P/E of ~38x based on FY26 EPS of Rs.15.08, which appears broadly in line with or at a modest discount to leading listed peers considering its market leadership and superior return profile. Accordingly, we recommend SUBSCRIBE rating to the issue for the long term.