Recasts to add details, analyst comments, charts and context

By Vivek Kumar M

July 21 (Reuters) - SBI Funds Management SBIA.NS jumped nearly 9% in its stock market debut on Tuesday, valuing the firm at more than $13 billion, as investors bet on growth in the country's $853 billion asset management industry.

Shares of India's largest asset manager rose as much as 8.9% to 624.95 rupees, valuing the firm at 1.27 trillion rupees ($13.19 billion) and making it the country's second-most valuable listed fund manager.

Peers ICICI Prudential Asset Management Company IICL.NS and HDFC Asset Management Company HDFA.NS were valued at 1.54 trillion rupees and 1.13 trillion rupees, respectively.

SBI Funds, a joint venture between State Bank of India SBI.NS, the country's largest lender, and Amundi AMUN.PA, Europe's biggest asset manager, oversaw assets worth 12.5 trillion rupees as of March 2026.

SBI Funds' $1.03 billion IPO, India's biggest so far this year, attracted about $31 billion of bids last week, including $278.5 million from anchor investors such as BlackRock and sovereign wealth funds from Singapore, Abu Dhabi and Norway.

Amundi CEO Valerie Baudson said the European firm will remain a long-term shareholder of SBI Funds.

The listing marks the start of a busier second half for large IPOs in India's primary market after the activity slowed due to a surge in crude prices linked to the Iran conflict.

Despite rising 9%, SBI Funds listed short of expectations. Analysts had expected debut gains of 12% to 13%.

"There might be some buying later in the day as the listing has been below expectations," said Ambareesh Baliga, a Mumbai-based market analyst.

India's Nifty 50 .NSEI was down 0.3%, weighed down by firmer crude oil prices as the Gulf conflict escalated.

Analysts led by Emkay Global Financial Services' Avinash Singh said India's growing middle class was embracing mutual funds, positioning SBI AMC to expand its dominance in the sector.

India has seen IPOs worth about $5 billion so far in 2026, below a record $21.8 billion last year, LSEG-compiled data showed.

Some 251 companies, including Reliance Jio and the National Stock Exchange of India, are in the IPO pipeline, seeking to raise 4.93 trillion rupees, according to capital market data provider PRIME Database.

($1 = 96.3150 Indian rupees)