SBI Funds Management Limited
DRHP · filed 24 Mar 2026
This is a draft. SEBI has not cleared it, there is no final price yet, and it may never become an IPO.
SBI Funds Management Limited is an asset management company that offers mutual fund schemes and has launched a daily SIP facility. The IPO consists of a fresh issue of shares and an offer for sale, with the offer for sale portion representing 100% of the net offer. The company's profitability is highly sensitive to fluctuations in QAAUM-linked revenues and the composition of its assets under management. Material risks include the potential for large-scale redemptions to trigger a compounding effect of performance deterioration, the volatility of assets sourced from Beyond Top 30 Cities, and the inability to sustain top-quartile performance across all schemes.
What stands out
Risk factor. A significant portion of our operating expenses are relatively fixed in the short to medium term, including employee costs, technology infrastructure, regulatory compliance costs, and distribution support. Any material decline in QAAUM-linked revenues could disproportionately impact our profitabilit
Risk factor. Changes in the composition of our QAAUM could adversely affect our revenues and profitability even if overall QAAUM remains stable or grows. A shift from higher-fee products (such as equity-oriented or actively managed schemes) to lower-fee products (such as debt-oriented or passive schemes) would r
Risk factor. Large-scale redemptions, particularly by institutional investors or high-net-worth individuals, could create a compounding effect where redemptions force schemes to sell securities at unfavourable prices, resulting in further performance deterioration and additional redemptions.
How the offer is structured
- carry out the Offer for Sale of up to 203,709,239 Equity Shares of face value of ₹1 each by the Promoter Selling Shareholders aggregating up to [●] million
- achieve the benefits of listing the Equity Shares on the Stock Exchanges
Promoters, litigation & related parties
Promoter (pre)
98.0%
Except as disclosed in this section, there are no outstanding criminal proceedings, actions by regulatory authorities, claims related to direct and indirect taxes, or other pending litigation involving the Company, Subsidiaries, Directors, Promoters, Key Managerial Personnel, and members of Senior Management. There are no disciplinary actions or penalties imposed by SEBI or stock exchanges against Promoters in the last five Financial Years. There are no pending litigation involving Group Companies that may have a material impact on the Company. The text provides a Materiality Policy for identifying material litigation.
Risks the company discloses
A significant portion of our operating expenses are relatively fixed in the short to medium term, including employee costs, technology infrastructure, regulatory compliance costs, and distribution support. Any material decline in QAAUM-linked revenues could disproportionately impact our profitability.(Financial Performance)
Changes in the composition of our QAAUM could adversely affect our revenues and profitability even if overall QAAUM remains stable or grows. A shift from higher-fee products (such as equity-oriented or actively managed schemes) to lower-fee products (such as debt-oriented or passive schemes) would result in a decline in our weighted average management fee realization.(Financial Performance)
Large-scale redemptions, particularly by institutional investors or high-net-worth individuals, could create a compounding effect where redemptions force schemes to sell securities at unfavourable prices, resulting in further performance deterioration and additional redemptions.(Asset Management)
Our Jan Nivesh SIP facility launched in February 2025, which allows daily investments starting at ₹250, may experience higher discontinuation rates among first-time investors due to the low-ticket size and daily frequency, which could adversely affect SIP persistency metrics and recurring inflows.(Asset Management)
As at December 31, 2025, 23.16% of our mutual fund MAAUM was sourced from Beyond Top 30 Cities (B-30), which may exhibit higher redemption volatility during market downturns compared to T-30 cities.(Asset Management)
As at December 31, 2025, 11.36% of our equity and equity-oriented schemes, and 22.49% of our hybrid schemes, delivered top-quartile performance over three-year periods, while 28.05% of our equity and equity-oriented schemes, 35.80% of our hybrid schemes, and 5.78% of our debt schemes delivered top-quartile performance over five-year periods. There can be no assurance that we will sustain this performance.(Asset Management)
As at December 31, 2025, we had 11 schemes with mutual fund QAAUM of ₹1,220.91 billion ranked in the bottom quartile of their respective categories based on three-year performance, representing 15.20% of our total mutual fund QAAUM.(Asset Management)
Our business as an asset management company is significantly dependent on the performance of Indian capital markets. Any adverse developments in Indian capital markets, including prolonged market downturns, increased volatility, or loss of investor confidence, could result in decline in our QAAUM due to mark-to-market losses, reduced investor confidence and higher redemptions.(Market Risk)