ICICI Prudential AMC IPO: PL Capital initiates coverage before debut; check details & GMP

Even before its listing, ICICI Prudential Asset Management Company has been able to draw interest from brokerage firms as PL Capital has initiated coverage on the stock even before listing. The domestic brokerage firm is expecting nearly a 39 per cent upside in the stock from its IPO price.

PL Capital is optimistic about its business prospects given its strong performance/parentage, driving the highest net equity flow market share among AMCs; superior equity yields of 67 bps 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. IPO valuation is indicating a discount to HDFC AMC Nippon India AMC. ICICIAMC may eventually command a premium to HDFC AMC due to better distribution and diversification while having similar profitability," said PL Capital with 'buy' rating and target price of Rs 3,000.

The grey market premium (GMP) of ICICI Prudential AMC has seen a strong rebound on the back of strong bids amid jittered market sentiments. Last heard, it was commanding a premium of Rs 350 apiece in the unofficial market, suggesting a listing pop of 16 per cent for the investors. The GMP stood around Rs 325 during earlier. 

The IPO of ICICI Prudential AMC was ran 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 issue was overall subscribed a total of 39.17 times, attracting bids nearly Rs 2.97 lakh crore through more than 55.07 lakh applications. It became the fourth most-subscribed public issue in India and fetched more applications than Tata Capital (23.6 lakh applications) and HDB Financial (43 lakh applications).

On an individual basis, the portions for qualified-institutional bidders (QIBs) were subscribed 123.87 times and the non-institutional investors (NIIs) were booked 22.04 times. The allocations for retail investors and shareholders were subscribed 2.53 times and 9.75 times, respectively Four- Sovereigns funds including Temasek, GIC, Abu Dhabi Investment Authority and Lunate participated in the IPO.

Incorporated in 1993, Mumbai-based ICICI Prudential AMC is an asset management company, whose investment approach has been to manage risk first and aim for long term returns for their customers. It has an active quarterly average asset under management (QAAUM). As of September 30, 2025, it has an QAAUM of 10,147.6 billion.

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. Shares of the company shall be listed on both BSE and NSE on December 19, Friday.