SBI Mutual Fund’s Surge Shows the Unlisted Market Isn’t Dead

SBI’s Unlisted Shares Are Defying Expectations

You’ve probably heard skeptical voices around the unlisted equity market lately — echoes in WhatsApp groups and finance forums that go something like, “no one’s making money in unlisted shares anymore.” After all, liquidity can be scarce, valuation hype has cooled, and many once‑promising names haven’t delivered.

But SBI Mutual Fund is quietly proving otherwise. Through a combination of consistent business performance and a long-term investor mindset, its unlisted shares have rallied sharply. This is a strong vote of confidence in the unlisted equity space — and a reminder that real, patient capital still matters.

The turning point came when SBI’s board approved an IPO plan for its asset‑management business, SBI Funds Management. While that IPO is still under consideration, the way unlisted investors have bid up the company’s shares is telling.

Back in early 2023, SBI’s unlisted MF shares were trading around ₹800–₹900. Today, they are priced at approximately ₹2,650, a gain of 190–230% — even before any public listing. For an investor who put in ₹10 lakh three years ago, that position could be worth about ₹33 lakh today.

This sharp jump is not just speculative frenzy. It reflects confidence in SBI MF’s fundamentals and future growth, rather than a short-term momentum play.

The Business Behind the Rally: Real Scale, Real Profits

SBI Mutual Fund isn’t a small startup — it’s a powerhouse in the asset management industry, and its financials back that up:

• Its AUM has grown strongly: from around ₹8 lakh crore (mid-2023) to roughly ₹12 lakh crore (by mid‑2025), showing sustained investor inflows and trust.

• In FY25, SBI MF reported revenue of ₹4,063 crore and a PAT of ₹2,540 crore — numbers that suggest high operating leverage.

• Its return on equity is estimated at a strong 30.8%, while the implied valuation multiple works out to approximately 52× earnings on unlisted shares.

• When one looks at the ratio of its implied market cap to AUM, it comes to about 11%, which is flanked by other major AMCs.

These aren’t speculative numbers — they’re rooted in a business that is delivering both scale and profitability.

It’s Not Just SBI: Why the Bigger Unlisted Narrative Matters

SBI MF’s unlisted performance is not a one-off. Other high-quality companies in the unlisted space are showing similar patterns of value creation:

• NSE (before any IPO) unlisted shares have seen a massive re-rating over time, largely because of its monopoly in trading, data services, and clearing infrastructure.

• Waaree Energies—a key player in the solar sector—saw strong investor interest in its unlisted shares, driven by strong demand for solar modules, policy tailwinds, and secular growth in renewables.

These examples illustrate a broader truth: unlisted investing, when done with discipline and a long horizon, remains a powerful way to build wealth.

Why Some Investors Got It Wrong: It’s Not About Quick Flips

The prevailing cynicism about unlisted shares often stems from a misunderstanding. Many investors went into the unlisted market expecting quick 3–6 month flips or sky-high listing valuations. But the unlisted world doesn’t always behave that way.

SBI’s story shows that the unlisted market isn’t about hype. It’s about fundamentals, earnings, and compounding. Those who bought early at modest prices and stuck around are being rewarded—not by fast gains, but by steady, meaningful value unlock.

What This Means for Long-Term, Value‑Focused Investors

Here’s what long-term, patient investors should take away:

• Solid business models win: SBI MF’s profit engine is strong, and its growth is driven by real AUM, not just promise.

• Unlisted equities still offer optionality: You don’t necessarily need to rely on IPOs to unlock value.

• Patience is rewarded: Unlike speculative bets, value-driven picks often need time to mature and compound.

• Due diligence matters: Quality is everything at this stage — not every unlisted name will scale, but those with strong fundamentals can generate exceptional outcomes.

If you're investing in unlisted shares, themes like profit generation, cash flow, management credibility, and business moats may matter more than the “next big startup” hype.

Risks to Consider

Of course, this is not risk-free terrain:

• Liquidity risk: Unlisted shares remain less liquid than listed ones, making exits more challenging.

• Valuation risk: While SBI MF’s valuation is backed by earnings, not every unlisted business will be.

• Regulatory risk: Any delay or change in listing plans could affect valuations.

• Concentration risk: Betting too much on a single unlisted name can be dangerous — diversification remains important.

Conclusion

SBI Mutual Fund’s unlisted share rally is a powerful reminder that the unlisted equity market is far from dead. It’s evolving, maturing — and rewarding for investors who understand that compounding, not speculation, is the real game.

For investors who believe in sustainable businesses, solid fundamentals, and time as an ally, unlisted markets continue to offer meaningful opportunities. SBI MF is not just a validation point; it’s a blueprint for how value investing in unlisted equities can work.

FAQs

1. Why did SBI MF’s unlisted share price increase so sharply?

Because its business is scaling rapidly, profits are strong, and early unlisted investors are now being rewarded before any public listing.

2. Is SBI Mutual Fund going to IPO soon?

There is discussion around a public listing, but the recent unlisted surge reflects value even before any IPO happens — the unlisted market is validating its business.

3. How risky is investing in unlisted shares like SBI Mutual Fund?

There are risks such as limited liquidity, valuation sensitivity, and execution risk. But solid long-term businesses like SBI MF may offer strong risk-adjusted returns.

4. Can retail investors participate in SBI MF’s unlisted shares?

Yes, via platforms that facilitate unlisted share transactions, though access and liquidity may be more constrained than in public markets.

5. What should unlisted investors focus on to pick good opportunities?

Focus on fundamentals — revenue growth, profitability, AUM trends, management quality, and business model durability.