ICICI Prudential Asset Management Company’s initial public offering (IPO) has garnered tremendous investor interest, reflecting strong market confidence in the firm. On the third and final day of bidding, the IPO was subscribed 39.17 times, with investors placing bids for 137.14 crore shares against an offer of 3.50 crore shares, indicating robust demand across all investor categories.
The Qualified Institutional Buyers (QIBs) led the frenzy, oversubscribing their allocation by 123.87 times. Meanwhile, the grey market premium (GMP) has held steady at around Rs 14 per share, signaling continued optimism among investors ahead of the stock’s listing.
On the third day of its IPO, ICICI Prudential Asset Management Company saw an overall subscription of 39.17 times, highlighting robust investor demand.
Retail Individual Investors (RIIs) subscribed 2.53 times for their allocated 1.62 crore shares, showing steady participation from individual investors.
Non-Institutional Investors (NIIs) demonstrated strong interest, subscribing 22.04 times their quota of 69.78 lakh shares.
Qualified Institutional Buyers (QIBs) led the surge, oversubscribing 123.87 times against the 93.04 lakh shares reserved for them, reflecting high confidence from large institutional investors.
The brokerage notes that the IPO values the company at around 40 times FY25 earnings at the upper band, which is comparable to HDFC AMC and Nippon India AMC. Its leadership in equity-oriented AUM and the structural shift toward long-term investing support the outlook.
Swastika Investmart has also issued a Subscribe recommendation, citing the AMC's diversified presence across equity, hybrid, debt, SIPs and passive products, along with sector-leading financial ratios. The firm highlights the strong brand equity of ICICI Bank and Prudential, stable fee income, and high operating leverage.
Swastika notes that the 82.8% ROE and 73% EBITDA margin place ICICI Prudential AMC among the most efficient players in the industry, making the IPO attractive for long-term investors despite being fully priced relative to peers.
The allotment of shares is expected to be finalised on December 17, 2025, with equity shares likely to be credited to investors’ demat accounts on December 18. The stock is scheduled to list on the BSE and NSE on December 19, 2025.
As per the allocation structure, up to 50% of the issue is reserved for Qualified Institutional Buyers (QIBs), a minimum of 35% is set aside for retail investors, while the remaining 15% is allocated to Non-Institutional Investors (NIIs).
The AMC benefits from high-margin fees, as more than half of its AUM is invested in equity-oriented schemes. It is also expanding rapidly in alternative investment avenues, including PMS, AIFs, and offshore advisory services. ICICI Prudential AMC remains the country’s most profitable asset manager, with a projected FY25 ROE of 82.8% and an EBITDA margin of 73%.
Distribution continues to be a key strength. The AMC operates 272 branches nationwide and leverages ICICI Bank’s extensive network of over 7,000 branches to enhance reach. In FY25, it was the leading generator of individual investor AUM in India, with retail and HNI clients accounting for more than 60% of its mutual fund portfolio. Digital channels now drive over 95% of new purchases, according to research reports.
AUM growth has broadly mirrored industry trends. India’s mutual fund AUM increased from Rs 54.1 trillion in March 2024 to Rs 67.4 trillion in March 2025 and further to Rs 77.1 trillion by September 2025. ICICI Prudential AMC’s quarterly average AUM (QAAUM) has consistently outpaced industry growth over the past two years, supported by rising SIP inflows, deeper financialisation, and robust equity markets.
Despite these risks, the AMC’s leadership in India’s long-term savings market, strong profitability, and steadily growing investor base make the IPO an attractive opportunity to participate in the industry's structural growth. However, high valuations and the absence of fresh capital raise expectations that the offering is more suitable as a long-term investment rather than a short-term listing gain.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times.)
