SBI Funds IPO priced at discount to listed AMCs on valuation metrics

SBI Funds Management’s IPO is priced at a discount to listed asset management companies. Its valuation reflects a lower share of equity-oriented schemes compared to peers. Equity funds generate higher fee income and profitability for asset managers. Investors typically assign premium valuations to asset managers with a larger equity franchise. This preference may explain SBI Funds Management’s lower price-to-earnings multiple.

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