ICICI Prudential AMC IPO signals strong demand with 13% grey-market premium

New Delhi: ICICI Prudential Asset Management Company’s Rs 10,603 crore initial public offering is drawing strong interest ahead of its Friday launch, with a grey-market premium of Rs 280 per share indicating a potential 13 per cent listing gain. The pricing signals healthy early demand for what is expected to be one of the most closely watched offerings in India’s asset-management industry this year.

The company has set a price band of Rs 2,061–2,165 per share. The issue opens on Friday, December 12, and closes on Tuesday, December 16, while the anchor book will open on Thursday, December 11.

Investors can apply for a minimum of six equity shares and in multiples of six thereafter.

In the unofficial market, the stock was trading at a Rs 280 premium over the top end of the price band, suggesting a possible listing price of Rs 2,445. The grey-market trend indicates that investors are bracing for a solid debut. The IPO is a pure offer for sale, with promoter Prudential Corporation Holdings Limited planning to offload up to 48,972,994 equity shares. The timing coincides with ICICI Prudential AMC’s continued consolidation of its position as the country’s largest active mutual fund manager by quarterly average assets under management.

A joint venture between ICICI Bank, which holds 51 per cent, and Prudential Corporation Holdings Limited, which owns 49 per cent, the AMC has been in operation since 1998. As of FY25, it commanded a 13.3 per cent market share in India’s active mutual fund segment, with total quarterly average AUM of Rs 8.8 lakh crore.

A CRISIL report notes that its equity and equity-oriented QAAUM market share stood at 13.4 per cent, the highest among fund houses, while its hybrid-equity funds also led the industry.

The company’s financial performance reflects its scale and profitability. Profit after tax grew at a CAGR of 32.2 per cent between FY23 and FY25 to Rs 2,650.6 crore.

Profit before tax expanded at a 32 per cent CAGR over three years to Rs 3,240 crore, reinforcing ICICI Prudential AMC’s position as India’s most profitable fund house on an operating basis.

The IPO is being managed by a broad consortium of global and domestic book-running lead managers, including Citigroup Global Markets India, ICICI Securities, Morgan Stanley India, Goldman Sachs India, BofA Securities India, Avendus Capital, Axis Capital, BNP Paribas and HDFC Bank. KFin Technologies is the registrar for the issue.