India's largest asset management firm makes a muted market debut after a $1 billion IPO

India’s largest asset manager, SBI Funds Management, marked a muted debut after a $1 billion initial public offering. Shares listed on Tuesday at a premium of 7% versus the IPO price, disappointing expectations for a stronger first day. The IPO was a joint venture between State Bank of India and Europe’s Amundi Group and drew bids worth 2.97 trillion rupees (30.7 billion dollars), oversubscribed 41.6 times, led by institutional investors. For the fiscal year ended March, KPMG India reported an average listing premium for Indian IPOs of 8%, down from 28% a year earlier. Analysts watched the listing as a gauge of appetite for major upcoming offerings such as Jio Platforms and the National Stock Exchange. Potential deal flow of $50 billion could hit markets this year, but the continuation of the Iran war was highlighted as a key risk. SBI Funds managed 29.5 trillion rupees (395 billion dollars) as of March.