Daijiworld Media Network - Mumbai
Mumbai, Dec 19: Shares of ICICI Prudential Asset Management Company (AMC) made an impressive debut on the stock exchanges on Friday, surging nearly 20 per cent after the company’s Rs 10,600 crore initial public offering (IPO) was listed.
The stock, which was priced at Rs 2,165 per share at the upper end of the price band, was listed on both the National Stock Exchange (NSE) and the BSE, and was last trading at around Rs 2,593 per share. The IPO had garnered strong investor interest, with the issue being subscribed over 39 times during the bidding process, driven largely by robust demand from institutional investors. The retail investor portion, however, saw a relatively modest subscription of about 2.5 times.
Major global and domestic institutional investors such as Singapore’s GIC and Temasek, along with India’s Life Insurance Corporation (LIC), participated in the offering. The IPO was managed by leading investment banks including Citigroup Global Markets India, BofA Securities India, Morgan Stanley, Axis Capital, Avendus Capital and ICICI Securities as joint bookrunners.
ICICI Prudential AMC, jointly owned by ICICI Bank and UK-based Prudential, is the country’s largest asset management company in terms of assets under active mutual fund schemes. As of the end of September, the company had an average quarterly mutual fund asset base of Rs 101.47 lakh crore and a retail investor base of 1.55 crore.
Market experts noted that despite muted retail participation in the IPO, the long-term prospects of the asset management industry remain strong. According to a Bain & Company report, retail investor-driven assets in India’s mutual fund industry are expected to grow significantly, reaching around $3.3 trillion by 2035, up from Rs 45 lakh crore in FY2025. This growth is being fuelled by increased participation from salaried millennials and Gen Z investors, many of whom are opting for mutual funds over direct equity investments.
Data from the Association of Mutual Funds in India (AMFI) also shows that investments through systematic investment plans (SIPs) have tripled to Rs 2.89 lakh crore in FY2025 compared to 2021, underlining the growing trend of disciplined retail investing.
Commenting on the listing, equity strategist Kranthi Bathini of Mumbai-based WealthMills Securities said the stock appears fairly valued and could offer buying opportunities on any dips. “With the increasing financialisation of savings in India, asset management companies like ICICI Prudential AMC are well positioned to benefit from long-term growth,” he said.
Financially, the company reported strong performance in FY2025, with revenue rising over 32 per cent year-on-year to Rs 4,977 crore, while net profit climbed nearly 30 per cent to Rs 2,650 crore.
India’s IPO market has remained buoyant this year, with companies raising $11.4 billion through 252 IPOs in the first three quarters alone. With several large listings lined up in the final quarter, including ICICI Prudential AMC, market observers expect total fund-raising in 2025 to surpass last year’s levels.