Shares of ICICI Prudential Asset Management Company are expected to make a strong market debut on Friday, December 19, with listing gains of up to 19 percent, according to the latest grey market trends.
The Rs 10,602.65-crore initial public offering (IPO) of the ICICI Bank-backed asset manager was subscribed 39.17 times on the final day of bidding on Tuesday, driven by strong demand from institutional investors. The company had earlier raised Rs 3,022 crore from anchor investors.
The IPO was priced in the range of Rs 2,061 to Rs 2,165 per share, valuing the company at around Rs 1.07 lakh crore.
According to analysts, IPO allottees may consider holding the stock from a long-term perspective, while investors who did not receive allotment have been advised against chasing the stock on listing day.
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Prashanth Tapse, Research Analyst at Mehta Equities, said ICICI Prudential AMC is likely to list in the range of Rs 2,450 to Rs 2,500 per share, implying a premium of 13 to 16 percent over the issue price.
"With strong parentage of ICICI Bank and Prudential, robust digital adoption and low concentration risk across schemes, ICICI Prudential AMC could command a premium valuation compared to peers. We recommend investors to hold the allotment for the long term," Tapse said.
"For non-allotted investors, we advise against chasing the stock on listing day and suggest waiting for more reasonable entry levels post listing, as near-term volatility or price consolidation cannot be ruled out," he added.
Shivani Nyati, Head of Wealth at Swastika Investmart, said investors with a medium-to-long-term horizon may consider holding the stock post listing, given the company’s positioning in India’s mutual fund and wealth management space.
"However, short-term investors may book partial profits and hold the remaining shares with a stop-loss at cost price," she said.
Mahesh M Ojha, Vice President – Research and Business Development at Kantilal Chhaganlal Securities, said ICICI Prudential AMC is well placed to benefit from the long-term structural growth of India’s asset management industry, making it suitable for medium-to-long-term holding.
ICICI Prudential Asset Management Company is among the leading mutual fund houses in the country, with operations across equity, debt, hybrid, passive and alternative strategies, catering to retail and institutional investors.
According to grey market trackers, the company’s shares are commanding a premium of about 17 to 19 percent. Investorgain quoted a grey market premium (GMP) of Rs 405, indicating a potential listing gain of about 18.7 percent, while IPO Watch reported a GMP of around 17 percent.
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