ICICI Prudential AMC IPO Opens: Will Shares Soar 7% on Day 1?

ICICI Prudential Asset Management Company (AMC) today made its public offering (IPO) debut with a goal to fetch Rs 10,602 crore, the latter's entire amount coming from the offer-for-sale (OFS) of 4.89 crore shares owned by promoter Prudential Corporation Holdings (UK). The window for public subscriptions is open until December 16.

The IPO has a price range of Rs 2,061 to Rs 2,165 per share, which values the company at about ₹1.07 lakh crore. It is worth mentioning that the issue represents an OFS, meaning the whole amount realized from the sale will be transferred to the shareholder who is selling, not to the company. ICICI Bank has a 51% stake in the AMC and Prudential possesses the other 49%. By the time it gets listed, ICICI Prudential AMC would have become the fifth ICICI Group company—after ICICI Bank, ICICI Prudential Life, ICICI Lombard, and ICICI Securities—to be traded on the stock market.

Before the public offering, the firm managed to get ₹3,022 crore from the anchor investors. The Good and the bad—foreign as well as domestic—institutions got involved in the event like the Singapore government, the Abu Dhabi Investment Authority, Fidelity, Norges Bank, BlackRock, Aberdeen, Wellington, J.P. Morgan Investment Management, Goldman Sachs, and Aranda Investments, to name a few. Indian players included LIC along with other big mutual fund houses like SBI MF, Nippon India MF, Axis MF, HDFC MF, and Aditya Birla Sun Life MF. Of the total 1.39 crore shares, 149 anchor investors were allocated shares at the maximum price of Rs 2,165 per share.

The market's vigorous interest is reflected in the Grey Market Premium (GMP) of the IPO, which has soared to Rs 150, the highest yet. This implies that the stock may be listed at about Rs 2,315, which corresponds to a premium of approximately 7% over the highest price range. Analysts anticipate ICICI Prudential AMC shares beginning their trading session on December 19.

As of March 2025, ICICI Prudential AMC has a total of Rs 8.8 trillion in assets under management (AUM), making it the second-largest asset manager in India. The firm owns a 13% share of the total market and hence has the potential to lead the industry in active fund management with its 13.3% share. Among both equity and debt categories, its AUM is Rs 4.9 trillion, consisting of 135 schemes aimed at distributing investment concentration.

The AMC’s operating revenue for the fiscal year 2025 was Rs 46.8 billion which equals to a 24% compound annual growth rate over the past four years. The company’s revenue is derived at 52 basis points which is more than the revenues of their counterparts like HDFC AMC and Nippon AMC. The net profit for FY25 was Rs 26.5 billion with a return on equity of 82.8%.

ICICI Prudential AMC's strong fundamentals, diverse product range, and increasing retail participation as well as expansion into PMS and AIFs have been pointed out by analysts as company's growth potential. The company's digital-driven operations and extensive distribution network have also been great contributors to its growth potential.

Market specialists are pointing out that there is a possibility of risks like competition becoming tougher, stock picking not performing well in some segments, and if passive funds become popular the company's fee yield might get affected. Nonetheless, the IPO is regarded as reasonably priced, taking into account the AMC’s size, high profitability, and consistent growth path.

The last moment for investors to place bids is until 5 PM on December 16. The early signs, including GMP trends and anchor investor participation, predict a good reception for the IPO. The market participants will keep an eye on the performance closely in the run-up to the listing on December 19.