ICICI Prudential AMC Shares Surge 20% on Debut: Should You Buy, Hold or Sell?

The much-anticipated initial public offering (IPO) of ICICI Prudential AMC has finally made its debut on the stock market, opening at a whopping 20% premium on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). The shares opened at ₹2,606.20 on the BSE and ₹2,600 on the NSE, but soon came under pressure due to profit booking, touching an intraday low of ₹2,575 per share on the NSE and ₹2,573.90 on the BSE.

What This Means for Investors

According to market experts, this dip presents an opportunity for those who missed out on applying for the public issue or failed to secure shares. However, they caution that ICICI Prudential AMC is a long-term investment and not suitable for short-term traders. Stock market experts advise investors to hold the stock for the long term, citing its strong fundamentals, balance-sheet strength, and consistency.

Key Takeaways from Market Experts

• Harshal Dasani, Business Head, INVAsset PMS, says the listing of ICICI Prudential AMC is a reminder that IPO outcomes are driven by institutional conviction rather than short-term hype.
• Ravi Singh, Chief Research Officer, Master Capital Services, calls ICICI Prudential AMC a portfolio stock, citing its robust distribution network, focus on profitability, and potential for long-term compounding.
• Shivani Nyati, Head of Wealth, Swastika Investmart, advises short-term investors to book profits, while long-term investors can hold the stock with a stop-loss near ₹2350.

Recommendations and Target Price

Prashanth Tapse, Research Analyst at Mehta Equities, recommends holding the stock for the long term, citing its dominant market position and long-term tailwinds from the financialization of household savings. Prabhudas Lilladher has assigned a ‘buy’ tag to ICICI Prudential AMC shares with a target price of ₹3,000 apiece.

Remember, this is a perspective, not a prediction. Do your own research and consult with certified experts before making any investment decisions.