Investors have sent a strong signal of confidence in the financial services sector, with ICICI Prudential AMC making a impressive debut on the stock exchanges. The company's shares listed at a nearly 20% premium to the issue price, marking a significantly stronger debut compared to most large offerings this year.
The listing performance places ICICI Prudential AMC behind only LG Electronics India, which had clocked a 50% listing gain, while comfortably outperforming other mega issues such as HDB Financial Services and Tata Capital. The Rs 10,603-crore IPO was subscribed 39.17 times overall, driven overwhelmingly by institutional demand.
Qualified institutional buyers subscribed their portion nearly 124 times, reflecting strong conviction from global and domestic funds. Non-institutional investors bid over 22 times, while retail investors subscribed their quota 2.53 times. The shareholder portion reserved for ICICI Bank shareholders also saw healthy demand, with subscriptions of close to 10 times.
Market participants said the debut was well supported by the company’s strong pedigree and leadership position in the mutual fund industry. Experts believe that post-listing valuations are now broadly in line with peers, but ICICI Prudential AMC could command a premium over time due to its strong parentage, robust digital adoption and diversified scheme mix.
Experts are advising allotted investors to hold the stock for the long term, while cautioning non-allottees against chasing the stock on listing day amid the possibility of near-term volatility. Brokerage PL Capital also remains positive on the stock, maintaining a buy rating with a target price of Rs 3,000.
ICICI Prudential AMC is India’s largest asset manager in terms of assets managed under active mutual fund schemes. The company operates across mutual funds, portfolio management services, alternative investment funds and offshore advisory, managing 143 schemes across asset classes with a pan-India presence through 272 offices.
Financially, the asset manager has shown consistent growth, with FY25 revenue rising 32% year-on-year and profit after tax increasing 29%. Its return on equity stood at over 80%, highlighting the asset-light nature and operating leverage of the business, factors that continue to attract long-term investors.
Remember, this is a perspective, not a prediction. It's essential to do your own research and consider your own risk tolerance before making any investment decisions. With the financial services sector showing signs of growth, it will be interesting to see how ICICI Prudential AMC performs in the future.
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