ICICI Prudential AMC shares settle 19% higher on debut day

Listing ceremony of ICICI Prudential AMC at the National Stock Exchange.

ICICI Prudential AMC, an arm of the ICICI Bank, settled 19 percent higher on debut day at 2,576.20 per share on the National Stock Exchange (NSE).

The stock had made a bumper market debut to list at more than 20 percent premium over its initial public offer (IPO) price on the National Stock Exchange (NSE), following a 39 times subscription to its issue between December 12-16 in the primary market.

Shares of ICICI Prudential Asset Management Company Ltd were listed at Rs 2,600 per share on the NSE, a healthy premium of 20.09 percent. The Rs 10,603-crore IPO had a price band of Rs 2,061-2,165 per share.

On the BSE, the shares of the company were listed at Rs 2606.20 apiece, a premium of 20.38 percent. The company's market capitalization post listing of shares stood at Rs 1,29,552.57-crore.

The market debut of ICICI Prudential AMC’s IPO, however, fell short of grey market expectations, which had anticipated a premium listing in the range of 17–25 percent.

Commenting on the listing, Anil Wadhwani, CEO of Prudential plc, said: "The significant investor demand for the IPO underscores IPAMC's growth strategy and its strong position in India – a key strategic market for Prudential. This milestone not only highlights IPAMC’s quality and potential for long-term value creation but also represents an important step in delivering value to our shareholders. We look forward to supporting the company’s continued journey as a publicly listed entity. I would like to congratulate the IPAMC leadership and management team on this successful listing."

"The estimated net proceeds¹ from this IPO and the earlier pre-IPO private placement are Rs 130 billion and, as previously communicated, are intended to be returned to Prudential shareholders, subject to regulatory and shareholder approvals where required," he added.

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Narendra Solanki, Head Fundamental Research - Investment Services at Anand Rathi Shares and Stock Brokers, noted "Rising participation in mutual funds, supported by consistent SIP flows and deeper financialisation of savings, continues to strengthen long-term revenue visibility for the asset-management industry. ICICI Prudential AMC performance is in line with the industry trend. The company delivered Rs 46.8 billion in operating revenue in FY25, growing at 24% CAGR over four years which is faster than listed peers. Its revenue yield of 52 bps is also higher than competitors such as HDFC AMC and Nippon AMC. Profitability is exceptional as well, with FY25 PAT at Rs. 26.5 billion and industry leading ROE of 82.8%.

"On valuation front, the company is fairly valued with P/E multiple of ~40x FY25 (in line with its peer HDFC AMC & Nippon LIfe India AMC). ICICI Prudential AMC could list at a price of ~2525 (GMP of 16.67% at upper band of Rs 2165). Hence, investors who have being allotted the shares may continue to hold for medium to long (post listing).

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ICICI Prudential AMC is the largest Asset Management Company in India based on active mutual fund quarterly average asset under management (QAAUM) with a QAAUM size of Rs 10.147.6 billion having a market share of 13.3%. Beyond mutual fund, they manage alternates business, comprising portfolio management services, alternative investment funds (AIF's) and offshore advisory mandates. They serve 15.5 million customers as on date.

ICICI Prudential AMC is the fifth ICICI Group entity to be listed, after ICICI Bank, ICICI Prudential Life, ICICI Lombard, and ICICI Securities, and joins other asset managers such as HDFC AMC, UTI AMC, Aditya Birla Sun Life AMC, Shriram AMC, and Nippon Life India Asset Management that are listed on the exchanges.

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