The Indian stock market witnessed a significant event on Friday as ICICI Prudential Asset Management, the country's second-largest mutual fund by assets, made its debut on the bourses with a 20% premium to its initial public offering price of ₹2,165. This listing price made it the most valuable asset manager in the country, with a market capitalization of ₹1,27,331 crore.
The stock opened at ₹2,600 on the NSE and touched a high of ₹2,663.4, before ending slightly lower at ₹2,576.2. This strong debut surpasses HDFC Asset Management, the country's third-largest asset manager, which was valued at ₹1,14,525 crore on Friday.
Analysts suggest that while the stock delivered significant listing gains, further sharp upside in the near term appears limited due to high valuations within the listed asset management space. Raj Gaikar, research analyst at Samco Securities, advises investors who received allotment to maintain a medium- to long-term perspective.
Fresh investors are cautioned against entering at current prices. Instead, those who missed the IPO would be better served by waiting for market-led corrections and accumulating the stock gradually on dips, rather than chasing short-term momentum at elevated valuation levels. Key points to consider include:
Remember, this is a perspective, not a prediction. It's essential to do your own research and consider your financial goals and risk tolerance before making any investment decisions.
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