After garnering a strong response to its ₹10,603-crore initial public offering (IPO), shares of ICICI Prudential Asset Management Co. are expected to make a strong debut on the domestic bourses. Ahead of its listing on the BSE and NSE on December 19, ICICI Prudential AMC has created a buzz in the unlisted market, with its grey market premium (GMP) surging to over 16%.

Data from Investorgain showed a grey market (GMP) premium of about ₹350 per share, indicating that the stock could list 16% higher over its issue price of ₹2,165, at around ₹2,515 per share.

According to Prashanth Tapse, Senior Vice President (Research) at Mehta Equities Ltd, ICICI Prudential AMC is likely to list in the range of ₹2,450–₹2,500, implying a premium of 13–16% over the issue price. He said the expected listing gains are supported by strong subscription traction and investor interest in the country’s largest and most diversified asset management company.

On valuation, the IPO sought a market capitalisation of ₹1,07,007 crore, which Tapse said appears fairly priced relative to listed peers. Backed by the strong pedigree of ICICI Bank and Prudential, robust digital adoption and low concentration risk across schemes, ICICI Prudential AMC could command a premium valuation multiple over peers, he said.

Given its dominant market position and long-term tailwinds from the financialisation of household savings, Tapse has advised investors to ‘Hold’ allotted shares for the long term.

“Accordingly, we recommend investors to “HOLD” allotment for the long term.” 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 amid cautious market sentiment,” he said.

PL Capital initiates ‘Buy’ rating

ICICI Prudential AMC has received a ‘BUY’ rating from PL Capital with a target price of ₹3,000, against a current market price of ₹2,165, indicating an upside potential of 38.5%. The brokerage values the company at 38 times September 2027 core earnings per share, citing optimism around its business prospects and strong fundamentals.

According to Gaurav Jani, Research Analyst at PL Capital, the company’s leadership position in net equity inflows, with a market share of 17.5% during the first eight months of FY26, is the highest among asset management companies. Superior equity yields of 67 basis points, driven by the lowest distributor payout ratio, strong parentage and a closed-architecture distribution model through ICICI Bank, were also cited as key positives. ICICI Prudential AMC accounts for nearly 74% of mutual fund sales through ICICI Bank and has a higher share of non-mutual fund revenue compared with peers.

The company has also demonstrated consistent superior fund performance, ranking among the top performers in one- and three-year buckets, with 90% of equity assets in the top quintile as of November 2025. Its equity portfolio is considered more risk-efficient due to lower concentration risk and the lowest exposure to small- and mid-cap stocks among peers.

The brokerage expects equity average assets under management to grow at a compound annual growth rate of 22.7% over FY25–FY28, outpacing industry growth and translating into a core profit after tax CAGR of 18.5%, the highest among listed peers.

IPO subscribed 39 times

ICICI Prudential Asset Management Company (AMC), a joint venture between ICICI Bank and UK-based Prudential plc, received a strong investor response for its IPO, with its issue subscribing over 39 times.

The issue, which was entirely an offer for sale of 4.90 crore shares at a price band of ₹2,061–₹2,165 per share, attracted bids worth ₹2.97 lakh crore. In total, more than 1.37 lakh crore shares were bid for against an offer size of about 3.50 crore shares, as per exchange data.

The IPO is the fourth-largest public issue of 2025, after Tata Capital (₹15,511.87 crore), HDB Financial Services (₹12,500 crore), and LG Electronics India (₹11,607.01 crore). Post listing, ICICI Prudential AMC will become the fifth listed entity from the ICICI Group, joining ICICI Bank, ICICI Prudential Life Insurance, ICICI Lombard General Insurance, and ICICI Securities.

Ahead of the IPO, the company raised ₹4,815 crore through a private placement at ₹2,165 per share. Investors included Lunate Capital, the Estate of Rakesh Jhunjhunwala, the University of California, Prashant Jain’s 3P India Equity Fund, WhiteOak, DSP India Fund, HCL Capital, Manish Chokhani and Madhusudan Kela, among others. Additionally, the company secured ₹3,022 crore from 148 anchor investors.

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