Brokerages are recommending participation in the initial public offering of SBI Funds Management, citing the firm's dominant market position and robust profitability.
Analysts argue that the company's backing by State Bank of India and its partnership with Amundi provide a durable competitive moat, justifying the current pricing despite concerns over premium valuation multiples.
The positive sentiment from sell-side analysts comes as the ₹11,693 crore offer for sale faces mixed early demand.
On the first day of the public issue, the retail subscription stood at just 0.71 times, indicating cautious interest from individual investors.
However, institutional appetite appears significantly stronger, with the anchor investor book reportedly subscribed 20 times, reflecting intense competition among large buyers to secure allocations.
The divergence between retail and institutional demand highlights the structural shift in India's asset management landscape.