Equirus targets ₹1,000 per share for SBI Funds Management IPO, Emkay sees ₹950. Both cite AUM leadership and high ROE as catalysts for the 25-31% upside.
SBI Funds Management, the asset management arm of State Bank of India, picked up two buy calls from Equirus Capital and Emkay Global ahead of its planned listing, with both analysts projecting up to 31% upside from the issue price.
Equirus initiated coverage with a target of ₹1,000 per share, implying a 31% gain from the upper end of the price band. Emkay set a target of ₹950, seeing 25% upside. Both firms cited the company's market leadership in mutual funds, its distribution reach through SBI's branch network, and the structural growth of India's asset management industry.
SBI Funds Management manages roughly ₹15 trillion in assets, making it the largest mutual fund house in India by AUM. The IPO is a pure offer-for-sale by the parent, SBI, which will offload a 10% stake. The price band has been set at ₹710–₹760 per share.
Equirus flagged the company's high operating leverage and low expense ratio relative to peers as key advantages. Emkay noted that the AMC's return on equity has averaged above 35% in the last three years, a level that supports its premium valuation.
The listing is expected in the coming weeks. SBI has not yet set a firm date for the debut.
Among other financial stocks, HDFC Bank (Alpha Score 45/100, Mixed) and Infosys (Alpha Score 57/100, Moderate) are tracked on the stock market analysis page for sector read-throughs.
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