SBI MF IPO vs ICICI AMC: Which is the better bet for investors ahead of Rs 11,600 crore issue?

Published 11 July 2026 · finance

SBI Funds Management's proposed Rs 11,600 crore IPO has put the spotlight back on India's listed asset management companies, with investors weighing whether the country's

SBI Funds Management's proposed Rs 11,600 crore IPO has put the spotlight back on India's listed asset management companies, with investors weighing whether the country's largest mutual fund house offers better value than peers such as ICICI Prudential AMC, HDFC AMC and Nippon Life India AMC.SBI Funds Management IPO detailsThe issue is entirely an offer for sale, meaning SBI Funds Management will not receive fresh capital from the IPO. The proceeds will go to the selling shareholders. Analysts said this should not be seen as a major negative because the AMC business is asset-light and does not require large capital to expand.SBI MF IPO valuationSBI Funds Management IPO was priced in the range of Rs 545-574 per share, valuing the company at around Rs 1.17 lakh crore at the upper end. Based on FY26 earnings, the issue is valued at about 38 times earnings, according to Paresh Bhagat, Chairman, Mangal Keshav Financial. That compares with about 41 times for HDFC AMC, 48 times for ICICI Prudential AMC and 51 times for Nippon Life India AMC."SBI Funds Management's IPO stands out because it brings together two things investors like to see -- market leadership and relatively reasonable pricing," Bhagat said.SBI MF analysisSBI Funds Management is India's largest asset manager, with quarterly average assets under management of around Rs 12.5 lakh crore and a market share of nearly 15%.

It has held its leadership position since March 2021. The company also has a strong position in passive funds, PMS and B-30 cities, helped by the SBI brand and the bank’s wide distribution network.Abhinav Tiwari, Research Analyst at Bonanza, said SBI Funds Management has a 15.3% market share and is also the leader in passive funds with 27.9% share. He said the company's scale is visible in its low operating expense ratio of 0.08% of QAAUM in FY25, the lowest among the top 10 AMCs.Its distribution strength is one of the main reasons investors are looking closely at the IPO. SBI Funds Management benefits from SBI's banking franchise, more than 1,32,000 mutual fund distributors, YONO’s large customer base and a sticky SIP book.Sourav Choudhary, MD, Raghunath Capital, said investors should not compare AMCs only on size. "Metrics such as earnings growth, profitability, operating margins, and valuation are equally important while comparing it with listed peers like ICICI Prudential AMC, HDFC AMC and Nippon Life India AMC," he said.SBI Funds Management IPO: GMP and other key details investors should know about Rs 11,693 crore offerWhat should investors do?While SBI Funds Management leads on scale, distribution and cost efficiency, ICICI Prudential AMC, however, earns more revenue from its assets despite having a smaller mutual fund AUM.