ICICI Prudential AMC shares: Brokerages see up to 22% upside post-listing at 20% premium; check price targets

ICICI Prudential Asset Management Company shares listed on the exchanges on December 19.

ICICI Prudential Asset Management Company shares made a strong market debut on Friday, listing at over a 20 percent premium to the issue price, valuing the company at around Rs 1.3 lakh crore, as investors bet on sustained domestic inflows into mutual funds.

The stock listed at Rs 2,600 per share on the National Stock Exchange, a premium of 20.09 percent over the upper end of the IPO price band of Rs 2,165. The Rs 10,603-crore public issue was priced in the range of Rs 2,061–2,165 per share.

During the session, the stock rose as much as 23 percent to Rs 2,663.40 on the NSE.

With the listing, ICICI Prudential AMC has become India’s most valuable listed asset management company, ahead of HDFC Asset Management Company, which has a market capitalisation of about Rs 1.12 lakh crore, and Nippon Life India Asset Management, valued at around Rs 56,000 crore.

ICICI Prudential AMC shares list at 20% premium over IPO price in strong market debut

Analysts said the company’s higher exposure to equity mutual funds adds to its appeal.

Prabhudas Lilladher has initiated coverage on the stock with a ‘buy’ rating, citing strong parentage and superior equity yields.

Centrum Broking has also initiated coverage with a ‘buy’ call and a target price of Rs 3,181, indicating an upside of about 22.35 percent from the listing price. The brokerage said the company remains a key beneficiary of structural growth in the domestic mutual fund industry and expects overall quarterly average assets under management to grow at a compound annual growth rate of 19 percent over FY25–FY28.

Equirus Securities has started coverage with a ‘long’ recommendation and a target price of Rs 2,900, stating that the current valuation appears attractive.

Dr. Ravi Singh, Chief Research Officer from Master Capital Services, said "With rising penetration of mutual funds, steady SIP inflows and increasing preference for professionally managed assets, the sector’s growth outlook remains favourable. ICICI AMC with a robust distribution network and focus on profitability place it a potential compounder over time. That said, with post-listing valuation a sustained AUM growth, stable market conditions and cost discipline will be critical factors which will define further upside. From a long-term investor’s perspective, the company offers a strong position in India’s wealth creation journey."

Earlier, ahead of the listing, PL Capital had initiated coverage on ICICI Prudential AMC with a ‘buy’ rating and a target price of Rs 3,000, implying an upside of nearly 39 percent from the IPO price.

The IPO of ICICI Prudential AMC was subscribed nearly 39 times during the December 12–16 subscription period.