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The initial public offering (IPO) of ICICI Prudential Asset Management Company, a subsidiary of ICICI Bank, opens on Friday, December 12 and closes on December 16. The price band is ₹2,061 to ₹2,165 per share, valuing the fund house at ₹1.07 lakh crore.
Retail investors can bid for one lot of six shares, which will entail a minimum investment of ₹12,990. About 35% of the issue is reserved for retail investors.
In the grey market, the stock is quoting a 7% premium, though these indicators tend to fluctuate sharply and should not be seen as reliable predictors.
Should you apply
At the upper band, the company is valued at a H1FY26 annualised P/E of 33.1 times. SBI Securities said the mutual fund industry is expected to grow at a CAGR of 16% to 18% through FY25 to FY30, with SIP AUM rising at 25% to 27%, driven by rising financialisation of savings and a sharp increase in demat accounts.
The brokerage did not assign a rating but said the outlook for the sector supports the company's long-term prospects.
Anand Rathi said that ICICI Prudential is among the most profitable AMCs in India and is valued at 40x FY25 earnings at the upper band, which it sees as fair compared to peers such as HDFC AMC and Nippon Life AMC.
It said the company's performance track record and financial strength remain strong, though valuations are fully priced in. The brokerage recommended subscribing from a medium to long-term view.
Sharekhan echoed this view, saying the company's strong market share, profitability, and financial metrics justify current valuations and warrant a subscribe recommendation for medium to long-term investors.
Arihant Capital issued a subscribe for long-term investors with a higher risk appetite, citing valuation and regulatory risks but highlighting the company's leverage to India's growing mutual fund industry.
Offer structure
The ₹10,602 crore IPO is entirely an offer for sale of 4.89 crore shares by UK-based Prudential Corporation Holdings. Since the issue has no fresh component, the company will not receive any funds and all proceeds will go to the selling shareholder.
Anchor round
ICICI Prudential AMC has garnered ₹3,021.8 crore from anchor investors, a day ahead of the issue launch.
Marquee global investors such as Fidelity, Norges Bank, BlackRock, Aberdeen, Wellington, Capital World, JPMorgan Investment Management Inc, Fidelity Management & Research, and Goldman Sachs Asset Management participated in the anchor round.
On the domestic side, investors included SBI Life, HDFC Life, Kotak Life, Aditya Birla Sun Life, and Bajaj Life.
Strong pre-IPO demand
ICICI Prudential AMC raised ₹4,815 crore in its pre-IPO placement. It allotted 2.22 crore shares at ₹2,165 each to a wide set of marquee investors, including Lunate Capital, the estate of Rakesh Jhunjhunwala, the Regents of the University of California, 3P India Equity Fund managed by Prashant Jain, PI Opportunities Fund II, 360One Funds, DSP India Fund, Whiteoak Capital India Opportunities Fund, HCL Capital, Manish Chokani and Madhusudan Kela.
Insurance players such as SBI Life, HDFC Life, Kotak Life, Aditya Birla Sun Life, Bajaj Life, TATA AIG and Go Digit also participated. Kedaara Capital Public Markets Fund, TIMF Holdings, Malabar India Fund and Clarus Capital I were among the other investors.
ICICI Bank itself invested ₹2,140 crore to increase its stake by 2%. The bank currently holds 51% in the AMC, while the remaining 49% is with Prudential Corporation Holdings.
The additional purchase is intended to help the bank retain majority control, especially in the event of stock-based compensation issuance. ICICI Bank had earlier announced that it plans to maintain majority ownership despite the partner's listing and stake sale.
Fifth AMC to list
ICICI Prudential AMC will become the fifth asset manager to list on the bourses after HDFC AMC, UTI AMC, Aditya Birla Sun Life AMC, Shriram AMC and Nippon Life India Asset Management. It will also be the fifth ICICI Group company to list.
The share allotment is expected on December 17, with the stock scheduled to debut on the exchanges on December 19.
