ICICI Prudential Asset Management Company (ICICI Pru AMC) is generating significant interest among investors, with a grey market premium (GMP) of Rs 160-165. This translates to a potential listing price of Rs 2,330, which is substantially higher than the upper end of its IPO price band of Rs 2,165.
A positive GMP is often seen as an indicator of strong demand for a stock in the unlisted space. Although GMPs are unofficial and speculative, they can reflect the market sentiment surrounding an IPO. In the case of ICICI Pru AMC, the sustained rise in the premium during the IPO window suggests robust buying interest even before the stock is listed on the stock exchange.
Market watchers believe that a consistent GMP like this often leads to a strong debut, although it is subject to broader market conditions and final investor turnout. Analysts caution that while GMPs can act as early indicators of sentiment, they should not be used as the sole metric for investment decisions.
Domestic brokerage firm Yes Securities has assigned a ‘Subscribe’ rating to the ICICI Pru AMC IPO. The firm highlighted the company’s profitability, process-driven management, and promising AUM outlook. The recommendation comes after an “idiosyncratic analysis” of ICICI Pru AMC, including a comparative study with listed peers.
ICICI Pru AMC has a market share of about 20% in operating PAT, while its market share in equity AUM stands at 13.6%. The company has a differentiated strategy in terms of product design and research, with a robust process-driven approach for equity research and fund management. ICICI Pru AMC has also built alternate assets worth over Rs 700bn in just five years, with PMS AUM exceeding Rs 240bn.
With its strong GMP and positive analyst recommendations, the ICICI Pru AMC IPO is generating significant interest among retail and institutional investors. As the IPO window closes, all eyes are on the company’s listing and its potential performance in the stock market.
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