ICICI Prudential AMC IPO Closes Today: Subscription Hits 2.5x, GMP ₹315

The initial public offering (IPO) of ICICI Prudential Asset Management Company (AMC), started on December 12, is set to end today. By the morning of the third day, the issue was heavily subscribed, and the total subscription was at 2.51 times the issue size. The retail portion got 0.95 times the subscription, while the non-institutional investors' share was 5.21 times, and the qualified institutional buyers (QIBs) were at 2.96 times. Bids numbering 3.50 crore have been received for 8.79 crore shares on offer.

The IPO, priced at ₹2,061 to ₹2,165 per share, is entirely an Offer for Sale (OFS) that aims to raise ₹10,602.65 crore for the company. All these shares are owned by Prudential Corporation Holdings and hence the wholesaler’s money will be paid to the promoters rather than ICICI Prudential AMC. The minimum number of shares for application is six.

ICICI Prudential AMC will be the fifth listed entity from the group and the first one to be newly listed among ICICI Group companies in Indian stock exchanges. The IPO allotment is anticipated on December 17, while the shares will probably be trading on December 19. The book running lead manager is Citigroup Global Markets India and the registrar functions are being performed by Kfin Technologies.

In the grey market, ICICI Prudential AMC shares are premium priced. Today, the GMP stands at ₹315 above the upper price band of ₹2,165, which suggests a potential listing price of around ₹2,480 having a 14.55% premium. The earlier reports had the GMP at ₹302 and indicated a listing of about ₹2,467.

The IPO saw the company garner a whopping ₹3,021 crore from 149 anchor investors, who got 13.96 million shares at the price of ₹2,165 each. The classical participation of sovereign wealth funds, global long-only funds, insurance companies, and domestic mutual funds was there. The most notable investors were Life Insurance Corporation of India (LIC), Aranda Investments, Zulia Investments, Capital Group Global, HDFC Mutual Fund, SBI Mutual Fund, Nippon India Mutual Fund, and Kotak Mutual Fund.

The major part of the brokers has given a positive opinion on the issue. Master Capital Services described the IPO as "subscribe," emphasizing the company's strong position in the equity and hybrid mutual fund segments, the growing alternatives business, and the country's extensive reach. Sharekhan pointed out the AMC's' strong profitability and consistent track record and estimated the IPO at about 40x FY25 earnings at the upper band. Aditya Birla Capital also suggested the issue for subscription, pointing to brand strength, steady fund performance, and an entire OFS of ₹10,603 crore.

ICICI Prudential AMC covers 272 points of sale spread across 23 states and four Union Territories. The company's distribution forms consist of 110,719 mutual fund distributors, 213 national distributors, and 67 banking associations, including ICICI Bank. Digital transactions are fully the investors' mode of engagement, making up 95.3% of the purchase volumes in the first half of FY26 via the i-Invest app and the company website.

The Indian mutual fund industry is likely to grow at a CAGR of 16-18% in the next five years, while SIP investments would post a much higher growth of 25-27% during FY25-FY30. Rising financialisation of household savings and deeper demat penetration are among the factors that analysts see supporting the long-term growth potential of ICICI Prudential AMC. During FY23-H1 FY26, total QAAUM, mutual fund QAAUM, and equity QAAUM of the company inflated at CAGRs of 33%, 33%, and 39%, respectively. The IPO at the upper price band is thus valuing the company at an annualised 1HFY26 P/E ratio of 33.1x.