SBI Fund Management Unlisted Share

Timeline

→ 1987 : Inception of SBI Mutual Fund

→ 1992 : SBI Mutual Fund crosses investor base of 1 million

→ 1999 : Introduction of India’s first contra fund and sector-specific funds

→ 2011 : Joint Venture with Societe General Asset Management

→ 2014 : Launch of SBI MF’s online platform for corporate investors

→ 2020 : First AMC in India to fully Comply with GIPS Becomes the Largest AMC in India

→ 2021 : First AMC in India to cross INR 5 trillion in average AUM for Domestic Mutual Funds

Management

Mr. Shamsher Singh – MD & CEO

·  With SBI since 1990

·  Before his deputation to SBIFML, he was heading the Ahmedabad Circle of SBI as Chief

·  General Manager and ensuring regulatory compliance across 1400+ branches of SBI.

Mr. Dinesh Kumar Khara - Chairman

·  With SBI since 1984

·  He has held several key positions such as MD (Global Banking & Subsidiaries), MD

(Associates & Subsidiaries), MD & CEO (SBI Mutual Funds) and Chief General Manager –Bhopal Circle.

Categories of SBI Mutual Funds

Industry Overview

Assets Under Management (AUM) of Indian Mutual Fund Industry as on January 31, 2024 stood at ₹ 52,74,000 crore. The AUM of the Indian MF Industry has grown from ₹9.03 trillion as on January 31, 2014 to ₹52.74 trillion as on January 31, 2024 around 6-fold increase in a span of 10 years.

SBI Mutual Fund Overview

More than 50% of the inflow in the mutual fund industry is going to SBI Mutual Funds helping SBI mutual fund to maintain the rank number 1 in terms of average AUM. The market share gain on terms of Average AUM was 0.84% on a YOY basis, the highest in the industry.

SBI Fund Management Business Insights

·  SBI Mutual Fund Average AUM YOY growth – 10.83% (highest among the top ten fund houses)

·  Market share gain on Average AUM terms was 0.84% on a YOY basis (highest in the industry)

·  First mutual fund house to cross an AUM of Rs. 7 Lakh Crores resulting in a record high market share of 17.7%.

·  Largest ETF Asset Manager in India, with QAAUM of 2,37,407 Crore with a market share of 46.82%.

·  Launched 26 New Fund Offers (NFOs) during the year which includes 7 open ended funds and 19 Fixed Maturity debt funds mobilizing in aggregate Rs.12,748 crores.

·  SBI Mutual Fund works with a diverse set of distribution partners and currently has over 99,000 empanelled distributors. During the year, the company had a presence in 278 locations spread all over India with 1 overseas Point of Presence in Dubai.

·  Overall, along with the growth in the business volume, the Company was managing total assets of about ₹ 18,81,441 Crores as on FY-23 (₹ 16,49,981 Crores as on FY-22)

Revenue Split

The Total Income of SBI fund Management grew by 21% from 2000 crores to 2413 crores in FY-23.

Peer Comparison

Valuations

SBI AMC has shown a commendable growth in the 9 months of FY-24. As of 9M FY-24, with an EPS of 30, SBI fund Management is currently trading at a P/E of 48 with a market price of 1400 per share as of 1st Feb, 2024.

As of 9M FY-24, with an EPS of 66, HDFC AMC is currently trading at a P/E of 55 with a market price of 3600 per share as of 1st Feb, 2024.

SBI Fund Management :

·  Estimated PAT for FY-24 - 1500 Crores which will be a 12% increase in the bottom line of the company.

·  Estimated P/E (FY-24) - 36

·  SBI fund Management has shown a better growth in numbers in comparison to its peer HDFC AMC and UTI AMC, hence the street is expecting the stock to perform well.

IPO Plans

On December 15, 2021, SBI initially announced that it planned to go public with the mutual fund subsidiary in an effort to raise $1 billion. But later in November, 2022, Dinesh khara told the reporters that there is no plan to list SBI Mutual Fund for now.

In August 2023, SBI Chairman Dinesh Khara announced during a post-earnings media that the bank's planned initial public offering (IPO) for its mutual fund unit is now “out of focus”.

SBI Fund Management Unlisted Share Price Journey

SBI Fund Management Unlisted Shares were introduced into the unlisted market in Feb-23 at a price of 999 per share and the stock made a low of 889 in May-23. Since then SBI Fund Management Unlisted Shares has rallied to a share price of 1600 per share in Feb-24.

The SBI Funds Management Annual Report 2022-2023