ICICI Prudential AMC, one of the largest and most profitable mutual fund houses, mobilised Rs 3,021.8 crore from 149 anchor investors on Thursday at Rs 2,165 per share, after a pre-IPO placement to top institutional investors. The Rs 10,600 crore IPO opened for bids on Friday. Nimesh Shah, MD & CEO tells Nesil Staney that while operating profit is the most relevant metric continuity of fund performance is vital. Excerpts:
Will bank sponsored AMCs continue to dominate the Indian industry? Why?
Bank sponsored AMCs have historically benefited from early scale, strong governance and wide distribution. How-ever, long-term leadership in this industry is not determined by sponsorship alone. Market share tends to consolidate around asset managers with consistent track record of fund performance, strong risk management and brand trust. As long as an AMC delivers a good investor experience and manages money conser-vatively across cycles, investors stay invested longer and allocate more. Over time, performance, process and risk management matters more.
Your IPO is shaping up to be a landmark event. With mega-IPOs expected in 2026, what is your outlook on primary markets?
A healthy primary market is ultimately a function of investor confidence and business fundamentals rather than the size of individual issues. Issuance volumes can vary year to year, but the broader trend is supported by India’s economic growth, rising household financialisation and increasing institutional participation.
What are the advantages of listing an AMC? Does it make it dearer to large investors?
Listing brings greater transparency, governance and accountability, but it does not alter the fiduciary responsibility of an AMC. Indian MF regulations ensure that the mutual fund business is structured in a way that shareholder interests and unitholder interests are aligned. Listing does not change the investment philosophy, risk management framework or pricing discipline. Large investors evaluate products based on fund performance, risk management and consistency.
You are the most profitable AMC. Can you maintain this position going ahead?
India is a market where scalable businesses with lower margins and higher volumes create enduring value. We focus on operating profit as the most relevant metric because it reflects the strength of the core asset management business. For any asset manager in India, a healthy business growth can be achieved by continuity of fund performance, maintaining a balanced mix across equity, hybrid, debt and alternates, and managing costs.
How do you see the competition from a significant number of new players in this industry?
New entrants bring innovation, awareness and expand the overall market. Over long periods, however, investor money tends to gravitate toward managers with proven track records, strong processes, consistent fund performance and trusted brands. The shift from savings to investments is already underway, supported by digitization, systematic transactions, and investor education.
What is the most profitable business of an AMC in different segments? How do you balance existing popular schemes and newer areas like AIFs and private credit?
Mutual funds remain the core business, driven by scale, stable flows and strong regulatory oversight. Alternates such as PMS, AIFs, real estate and private credit operate with a different cost and revenue profile with greater flexibility in fee structures.
What is your strategy for the newly planned SIF products, and how do you see them performing?
The introduction of the SIF framework adds another avenue to serve investors with differentiated risk and return preferences. As with any product, long-term success will be driven by outcomes that are consistent with investor expectations.
What are the growth plans at the AMC level? Are you looking at new areas?
Systematic investments bring long-term, predictable flows into the industry. Alongside our core mutual fund business, we have expanded our alternatives platform, which includes portfolio management services, alternative investment funds, offshore advisory, real estate and private credit strategies. This alternates business has seen sharp growth in recent years and remains a strategic priority.
You believe OPAT is the most appropriate profitability metric for the industry. Why?
Profit after tax is often the most cited number, but it does not always reflect the true strength of an asset management business. PAT can be influenced by the size of a company’s investments. Operating profit after tax, on the other hand, captures profitability purely from investment management fees. It offers a clearer picture of how the business is performing, driven by asset scale, product mix and operational efficiency. On this measure, ICICI Prudential AMC accounted for about 20 per cent of the industry’s operating profit in FY25, making it the largest profit pool among Indian asset managers.