ICICI Prudential AMC: After a solid D-St debut; brokerages another 22% upside in the stock
Shares of ICICI Prudential AMC made a solid stock market debut on Friday, December 19 as the stock was listed at a 20 per cent premium on both BSE and NSE.
- Dec 19, 2025,
- Updated Dec 19, 2025 11:16 AM IST
ICICI Prudential AMC: Shares of ICICI Prudential Asset Management Co Ltd (AMC) made a solid stock market debut on Friday, December 19 as the stock was listed at a 20 per cent premium on both BSE and NSE. However, the stock, even after remaining range bound, managed to draw analysts interest ahead of its listing, which suggest more steam left in the counter.
Brokerage firms believe that the stock is likely to be benefitted from its robust growth potential, deep investor base, solid financials and profitability and market dominance. The analysts' target prices were hinting at 34-47 per cent upside in the stock over its issue price of Rs 2,165. Their targets still hint at up to 22 per cent upside from its listing price of Rs 2,600.
ICICI Prudential AMC is a key beneficiary of the structural growth in India’s mutual fund industry, which has witnessed a sharp expansion in QAAUM over the past few years. It is the second-largest AMC with about 13 per cent market share and a leader in active mutual funds. It also commands the largest individual investor franchise, said Centrum Broking.
It has has a larger AIF/PMS franchise than peers, with combined QAAUM of Rs 72,900 crore, alongside the widest mutual fund product bouquet with 143 schemes, ensuring strong diversification. No single scheme contributes more than 7.1 per cent of total QAAUM, limiting concentration risk. Its distribution reach remains extensive, it said.
"Despite operating on a relatively larger equity AUM base, IPRU AMC has consistently sustained equity yields above 60bps, outperforming HDFC AMC by 2 bps. Tt operates with the lowest distributor payout ratio among peers, reflecting a stronger unit economics. PAT is expected to sustain momentum. We initiate coverage with a 'buy' rating and a target price of Rs 3,181," Centrum adds.
The IPO of ICICI Prudential AMC was open for bidding between December 12 and December 16. It had offered its shares in the price band of Rs 2,061-2,165 per share with a lot size of six shares. It raised a total of Rs 10,602.65 crore via IPO, which was entirely an offer-for-sale (OFS) up to 4,89,72,994 equity shares by Prudential Corp (UK).
The Indian MF industry has seen robust growth over the last 5 years, with revenue, Ebitda and PAT CAGR of 16 per cent, 19 per cent and 23 per cent, respectively. Industry PAT crossed Rs 15,000 crore in FY25, equivalent to 23bps of AQAAUM. ICICI Prudential AMC (ICICIAMC) leads the industry on profitability, with the highest PAT market share of 17.4 per cent in FY25, said Equirus Securities.
From a business-mix perspective, ICICIAMC is India’s largest equity-focused AMC, led by consistent scheme performance, a 2,900 sales force, and deep retail/HNI penetration. Equity AUM has grown at a 27 per cent CAGR since FY15, sustaining a higher-yielding mix and reinforcing long-term positioning, it said.
"Beyond its MF franchise, rapid scaling of non-MF businesses with 120 bps+ yields further boosts blended profitability. Coupled with an asset-light model, ICICI AMC delivers industry-leading profitability. We expect FY25-FY28E revenue and PAT CAGR of 16 per cent, led by robust MF/alternates AUM growth," adds Equirus with a 'long' rating and a target rice of Rs 2,900.
Citigroup Global Markets India, Goldman Sachs (India), ICICI Securities, Morgan Stanley India, BofA Securities, Avendus Capital, Axis Capital, BNP Paribas and CLSA India are among the 18 the book running lead manager and Kfin Technologies is the registrar of the issue.
PL Capital is optimistic about its business prospects given its strong performance/parentage which is driving the highest net equity flow market share among AMCs; its superior equity yields due to lowest distributor payout; it accounts for 73.7 per cent of MF sales by ICICIBC due to the latter’s closed architecture; and a higher share of non-MF revenue at 9.2 per cent among peers.
"We expect equity AAuM CAGR over FY25-28E to be 2.5 per cent higher than industry, leading to core PAT CAGR of 18.5 per cent. ICICI AMC may eventually command a premium to HDFCAMC due to better distribution and diversification while having similar profitability. We initiate coverage on ICICI AMC with a ‘buy’ rating and target price of Rs 3,000," it added.
ICICI Prudential AMC: Shares of ICICI Prudential Asset Management Co Ltd (AMC) made a solid stock market debut on Friday, December 19 as the stock was listed at a 20 per cent premium on both BSE and NSE. However, the stock, even after remaining range bound, managed to draw analysts interest ahead of its listing, which suggest more steam left in the counter.
Brokerage firms believe that the stock is likely to be benefitted from its robust growth potential, deep investor base, solid financials and profitability and market dominance. The analysts' target prices were hinting at 34-47 per cent upside in the stock over its issue price of Rs 2,165. Their targets still hint at up to 22 per cent upside from its listing price of Rs 2,600.
ICICI Prudential AMC is a key beneficiary of the structural growth in India’s mutual fund industry, which has witnessed a sharp expansion in QAAUM over the past few years. It is the second-largest AMC with about 13 per cent market share and a leader in active mutual funds. It also commands the largest individual investor franchise, said Centrum Broking.
It has has a larger AIF/PMS franchise than peers, with combined QAAUM of Rs 72,900 crore, alongside the widest mutual fund product bouquet with 143 schemes, ensuring strong diversification. No single scheme contributes more than 7.1 per cent of total QAAUM, limiting concentration risk. Its distribution reach remains extensive, it said.
"Despite operating on a relatively larger equity AUM base, IPRU AMC has consistently sustained equity yields above 60bps, outperforming HDFC AMC by 2 bps. Tt operates with the lowest distributor payout ratio among peers, reflecting a stronger unit economics. PAT is expected to sustain momentum. We initiate coverage with a 'buy' rating and a target price of Rs 3,181," Centrum adds.
The IPO of ICICI Prudential AMC was open for bidding between December 12 and December 16. It had offered its shares in the price band of Rs 2,061-2,165 per share with a lot size of six shares. It raised a total of Rs 10,602.65 crore via IPO, which was entirely an offer-for-sale (OFS) up to 4,89,72,994 equity shares by Prudential Corp (UK).
The Indian MF industry has seen robust growth over the last 5 years, with revenue, Ebitda and PAT CAGR of 16 per cent, 19 per cent and 23 per cent, respectively. Industry PAT crossed Rs 15,000 crore in FY25, equivalent to 23bps of AQAAUM. ICICI Prudential AMC (ICICIAMC) leads the industry on profitability, with the highest PAT market share of 17.4 per cent in FY25, said Equirus Securities.
From a business-mix perspective, ICICIAMC is India’s largest equity-focused AMC, led by consistent scheme performance, a 2,900 sales force, and deep retail/HNI penetration. Equity AUM has grown at a 27 per cent CAGR since FY15, sustaining a higher-yielding mix and reinforcing long-term positioning, it said.
"Beyond its MF franchise, rapid scaling of non-MF businesses with 120 bps+ yields further boosts blended profitability. Coupled with an asset-light model, ICICI AMC delivers industry-leading profitability. We expect FY25-FY28E revenue and PAT CAGR of 16 per cent, led by robust MF/alternates AUM growth," adds Equirus with a 'long' rating and a target rice of Rs 2,900.
Citigroup Global Markets India, Goldman Sachs (India), ICICI Securities, Morgan Stanley India, BofA Securities, Avendus Capital, Axis Capital, BNP Paribas and CLSA India are among the 18 the book running lead manager and Kfin Technologies is the registrar of the issue.
PL Capital is optimistic about its business prospects given its strong performance/parentage which is driving the highest net equity flow market share among AMCs; its superior equity yields due to lowest distributor payout; it accounts for 73.7 per cent of MF sales by ICICIBC due to the latter’s closed architecture; and a higher share of non-MF revenue at 9.2 per cent among peers.
"We expect equity AAuM CAGR over FY25-28E to be 2.5 per cent higher than industry, leading to core PAT CAGR of 18.5 per cent. ICICI AMC may eventually command a premium to HDFCAMC due to better distribution and diversification while having similar profitability. We initiate coverage on ICICI AMC with a ‘buy’ rating and target price of Rs 3,000," it added.