Shares of SBI Funds Management climbed in their first day of trading in Mumbai following the firm's $1 billion initial public offering, India's largest so far this year.

The stock rose as much as 8.9% to 625 rupees early Tuesday before paring the gain to about 8% on the BSE around noon. That gave India's largest asset-management company a market valuation of more than $13 billion.

SBI Funds Management managed a quarterly average assets under management of 29.5 trillion rupees, equivalent to $305.74 billion, as of March, and is India's largest asset-management company by mutual fund assets, with a roughly 15% share.

A solid trading debut by SBI Funds Management could provide a much-needed lift to India's relatively subdued IPO market, indicating robust investor interest in big-name listings.

Among the companies seeking to go public in 2026 is the National Stock Exchange of India. The country's largest stock exchange in June filed for an IPO that could be one of India's biggest-ever listings. Other highly anticipated IPOs include that of Jio Platforms, the company behind India's largest mobile network provider, which filed its preliminary prospectus earlier this year.

Nearly 171 million SBI Funds Management shares, priced at 574 rupees each, were sold in its IPO, raising the equivalent of about $1.02 billion. The asset-management company's major shareholders, State Bank of India, one of the country's largest lenders, and the Indian arm of European asset manager Amundi, received all the net proceeds from the offering.

Including a separate pre-IPO private placement, around 203.7 million shares were sold by both shareholders, representing 10% of SBI Funds Management's total shares.

Amundi said last week it expects to generate a net capital gain of around 300 million euros, or $342.5 million, to be booked in the third quarter.

Aditya Birla Capital analysts reckon SBI Funds is set to benefit from India's rising mutual fund penetration and should be able to capitalize on the industry's expected growth, projecting sector AUM growing at a 16%-17% compound annual rate over fiscal 2026 to 2029.

"Backed by [State Bank of India's] trusted franchise and Amundi's global expertise, the company has built a scalable, asset-light and high-return business model," they wrote.

With the SBI Funds listing, India's largest mutual fund houses, which manage more than half the industry's 82 trillion rupees, are now all publicly listed, noted Gopal Jain of Gaja Alternative Asset Management.

Peer ICICI Prudential Asset Management, a joint venture between India's ICICI Bank and U.K. insurer Prudential, made its debut in December after a $1.17 billion IPO.

Write to Megan Cheah at megan.cheah@wsj.com

(END) Dow Jones Newswires

July 21, 2026 04:50 ET (08:50 GMT)

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