ICICI Pru AMC IPO: GMP jumps post blockbuster listings, analysts see valuations compelling

Blockbuster debut of Meesho and decent returns by Aequs and Vidya Wires on Wednesday, December 10 has pushed the grey market premium (GMP) for ICICI Prudential AMC IPO. The mutual fund entity is set to launch its primary market offering on Friday, December 12, 2025 and analysts, so far, appear to be positive on the issue.

Last heard, ICICI Prudential AMC was commanding a premium of Rs 140-150 apiece, signaling a listing gains of 6-7 per cent for the investors. Interestingly, its GMP hovered around Rs 120-125 a day ago, while it stood at Rs 85-90 on Monday. The volatile sentiments of the secondary markets have been denting the sentiments for primary markets as well.

ICICI Prudential AMC is India’s largest asset manager by active QAAUM with a 13.3 per cent market share. It dominates high yield equity and hybrid categories, ensuring superior revenue yields over peers. Based on FY25 financials, it is valued at a P/E multiple and a price/operating profit multiple of 40.4 times and 33.1 times, respectively, both below its listed peer, said Nirmal Bang Institutional Equities.

It delivered an industry-leading return on equity of 82.8 per cent in FY25. This performance is underpinned by a lean, asset-light model, and a high dividend payout policy, it noted. ICICI Prudential AMC offers a compelling investment proposition due to its leadership in profitable equity segments, its industry attractions, and a relative valuation discount," it added.

Nirmal Bang has cited market volatility, regulatory risk, and industry competition. Growth of passive funds (ETFs/Index Funds) could exert pressure on market share and yields as key risks for the issue. However, it has not rated the issue in its recent note.

ICICI Prudential AMC IPO shall open for bidding on Friday, December 12 and will close for bidding on Tuesday, December 16. The mutual fund player will sell its shares in the range of Rs 2,061-2,165 apeice. Investors can apply for a minimum of 6 equity shares and its multiples thereafter.

With a strong market share, ICICI Prudential AMC is among the most profitable AMCs in the industry. IPO is valued at 40 times PE on FY25 earnings, which are fair when compared to the leading players, said Mirae Asset Sharekhan. "Considering its consistent track record and superior financial metrics the valuations are reasonable," it added with a 'subscribe' rating for the IPO.

ICICI Prudential AMC has reserved 24,48,649 equity shares for its eligible shareholders of ICICI Bank. Of the net offer, 50 per cent shares are reserved for qualified institutional bidders (QIBs), while non institutional investors (NIIs) and retail investors have 15 per cent and 35 per cent allocation, respectively.

The issue implies a rich P/B multiple of 30.4 times, placing ICICI Prudential AMC at a premium to listed peers but supported by its franchise strength and profitability profile. This justifies a 'subscribe for long term' view only for investors with higher risk appetite who are comfortable with valuation, said Arihant Capital Markets.

"Structural drivers such as rising financialization of savings, deepening SIP penetration and its strong multi-channel distribution should support steady AUM accretion and annuity-like fee income, though earnings remain exposed to market volatility and regulatory changes in TER and distribution economics."

ICICI Prudential AMC has reported a net profit of Rs 1,617.74 crore with a revenue of Rs 2,949.61 crore for the three months ended on September 30, 2025. It clocked a net profit of Rs 2,650.66 crore with a revenue of Rs 4,979.67 crore for the financial year 2024-25. The company shall command a market capitalization of more than Rs 1.07 lakh crore.

The IPO of ICICI Prudential AMC has as many as 18 book running lead managers (BRLMs), while Kfin Technologies is the registrar for the issue. Shares of the company shall be listed on both BSE and NSE on Friday, December 19, 2025.