ICICI Prudential Asset Management on Tuesday received bids worth Rs 3 lakh crore for its IPO, making it the fourth most-subscribed public issue in India.
The Rs 10,600-crore IPO was subscribed 39.17 times on the final day of bidding on Tuesday, led by heavy demand from institutional buyers. It saw the highest bids after IPOs by Reliance Power in 2007, LG Electronics India this year, and Bajaj Housing Finance in 2024.
Since LG Electronics gained 50% on the listing day, the AMC’s debut on the bourses will be keenly watched, said market experts.
What did Nimesh Shah say?
“A healthy primary market is a function of investor confidence and business fundamentals rather than the size of individual issues,” said Nimesh Shah, MD & CEO. “Listing brings greater transparency, governance and accountability, but it does not alter the fiduciary responsibility of an AMC,” he told FE.
Institutional investors led the bids with the portion set aside for them subscribed about 124 times. Shares kept for non-institutional and retail investors were subscribed 22 times and 2.5 times, respectively. The portion reserved for ICICI Bank’s shareholders was subscribed 9.8 times.
“Large investors evaluate products based on fund performance, risk management and consistency. Listing does not change the investment philosophy, risk management framework or pricing discipline,” Shah said.
Anchor investment
Last week, the AMC raised ₹3,021.8 crore from around 100 anchor investors at ₹2,165 per share. A pre-IPO placement with institutional investors had raised around ₹4,815 crore.
The firm is a joint venture between ICICI Bank and British insurer Prudential. The IPO was entirely an offer-for-sale of more than 48.9 million shares by Prudential.