What does it mean when one of India’s largest asset managers decides to go public? Is this just another IPO or a rare window into the engine room of India’s booming mutual fund industry? ICICI Prudential Asset Management Company – the joint venture between ICICI Bank and UK-based Prudential – has officially filed its draft papers, setting off a wave of speculation and anticipation on Dalal Street.
It is also expected to be the second-largest IPO in the financial services space after HDB Financial’s Rs 12,500 crore IPO in June this year. The scale alone demands attention to this upcoming offering. Apart from that, it is also common in the street that when a firm managing lakhs of crores in investor wealth decides to go public, the street pays attention.
Should you be watching this issue more closely than any other IPO this year? If you care about where India’s financial markets are heading and want a front-row seat to one of its most influential asset managers, let’s take a closer look at what ICICI Prudential AMC is bringing to the table.
ICICI Prudential AMC IPO: Files draft IPO paper with SEBI
ICICI Prudential Asset Management Company has filed draft papers (DRHP) with SEBI on July 8. This draft paper outlines the company plans for an initial public offering (IPO) consisting entirely of an offer-for-sale (OFS). The issue will see approximately 1.76 crore equity shares offloaded by Prudential Corporation Holdings, the company’s foreign partner.
There will be no fresh issue component in this IPO. As a result of this, the proceeds from the sale will go directly to the selling shareholder, with the company itself not raising any capital through this offer. The filing positions ICICI Prudential AMC to join the list of asset managers tapping the public markets.
Here’s what we know so far about ICICI Prudential AMC IPO
ICICI Prudential AMC IPO: Objective of the issue
The DRHP filed by ICICI Prudential AMC details the core objectives of its proposed IPO. The offer is structured entirely as an offer-for-sale, involving up to 1.76 crore equity shares of face value Rs 1 each, being sold by the promoter shareholder, Prudential Corporation Holdings.
Furthermore, the company also mentioned in the filing that it will not receive any proceeds from the issue, as the funds raised (after accounting for offer-related expenses and applicable taxes) will go directly to the selling shareholder. In addition to facilitating this partial exit, the IPO also aims to list the company’s shares on Indian stock exchanges. According to the filing, the listing is expected to create a public market for its equity and meet regulatory listing requirements.
ICICI Prudential AMC IPO: Business overview
Talking of the business dynamic of this asset management company, it is structured around a mix of core investment services and a broad product suite catering to various needs of the investor. It functions as the investment manager to ICICI Prudential Mutual Fund and offers mutual fund schemes, portfolio management services (PMS), and alternative investment funds (AIFs).
Furthermore, it also provides advisory services to offshore clients and manages products across asset classes to serve different investment goals. This includes everything from income generation to long-term capital growth.
ICICI Prudential AMC IPO: What does the company do?
As of now, it is clear that the company operates primarily in the asset management space. But what key services do they provide? Let’s take a look into it-
Mutual Fund Management – The company serves as the investment manager to ICICI Prudential Mutual Fund, which had a Quarterly Average AUM of Rs 87,941 crore as of March 31, 2025. With 135 mutual fund schemes under management, it holds the largest portfolio of schemes in India.
Its product mix comprises equity, debt, ETFs, index funds, arbitrage, and liquid/overnight schemes. The company also sees steady inflows through SIPs and STPs, with a total of Rs 39.1 billion in March 2025.
Portfolio Management Services (PMS): Under its expanding “Alternates” segment, the company manages Rs 211.8 billion in PMS QAAUM, serving over 23,000 clients across 25 strategies.
Alternative Investment Funds (AIFs): ICICI Prudential AMC also manages both Category II and Category III AIFs. These include corporate credit opportunities and commercial office yield products, forming another key pillar of its Alternates platform.
Offshore Advisory Services: Since 2006, the company has been providing investment advisory services to offshore clients. Among its key clients is Eastspring, Prudential’s in-house asset management business, to whom it provides guidance on select equity and debt products across markets in Asia, including Japan, Hong Kong, Taiwan, and Singapore.
Revenue Streams: A large part of ICICI Prudential AMC’s revenue comes from management fees across these business lines. The offerings are structured to align with a wide range of client objectives, from short-term income to long-term capital appreciation across both domestic and international markets.
ICICI Prudential AMC IPO: Major shareholders
As of the DRHP filing, ICICI Prudential Asset Management Company is entirely owned by its two promoters – ICICI Bank and Prudential Corporation Holdings who together hold 100% of the company’s issued, subscribed, and paid-up equity share capital.
ICICI Bank holds a 51% stake in the company, amounting to 90,025,730 equity shares of Rs 1 each. While most of these shares are held directly, a small portion is held through nominee shareholders, including various ICICI group executives. ICICI Bank is also the parent of ICICI Securities, one of the book-running lead managers for the IPO. The average acquisition cost for ICICI Bank’s shares is Rs 6.7 per share.
Prudential Corporation Holdings owns the remaining 49%, equivalent to 86,495,170 equity shares. It is the designated selling shareholder in the IPO and is a wholly owned subsidiary of Prudential Holdings, part of the global Prudential group headquartered in the UK, with Prudential plc as the ultimate parent company. The average acquisition cost of its shares stands at Rs 5.5.
Both promoters will continue to retain their respective ownership percentages after the proposed bonus issuance, if completed.
ICICI Prudential AMC IPO: Financial performance
In FY2025, the company reported a Quarterly Average AUM of Rs 9,432.8 billion, with equity oriented schemes making up 55.5% of this, contributing to higher revenue yields. Total operating revenue stood at Rs 49,773.3 million, of which 94% came from management fees across mutual funds, PMS, AIFs, and offshore advisory.
Operating profit before tax was Rs 32,361.6 million, while profit after tax came in at Rs 26,506.6 million. The company reported a Return on Equity of 82.8% and an EPS of Rs 150.2. Expenses rose to Rs 14,466.2 million, mainly due to higher employee costs and distributor commissions, though the operating margin remained steady at 0.36%.
Digital transactions accounted for 93.6% of mutual fund purchases, supporting cost efficiency and scale.
| Metric | Value | Remarks |
| Quarterly Avg AUM | Rs 9,432.8 billion | 55.5% in equity-oriented schemes |
| Operating Revenue | Rs 49,773.3 million | 94% from management fees |
| Profit After Tax (PAT) | Rs 26,506.6 million | ROE: 82.8%, EPS: Rs 150.2 |
ICICI Prudential AMC IPO: Market position and promoters
As of March 31, 2025, ICICI Prudential Asset Management Company holds a significant position in India’s asset management space. It is the largest AMC by active mutual fund Quarterly Average Assets Under Management (QAAUM), with a market share of 13.3%, and the second largest by overall QAAUM at 13.0%, as per the DRHP filed by the company.
The company also leads in discretionary portfolio management among domestic non-corporate clients. It manages Rs 182.8 billion in closing AUM under this segment. For FY24, it reported the highest operating profit before tax among Indian AMCs, accounting for a 21.2% share of industry profits.
ICICI Prudential AMC has been operating as a joint venture between ICICI Bank and Prudential Corporation Holdings since its inception in 1998.
ICICI Prudential AMC IPO: Risk factors
ICICI Prudential AMC, in its Draft Red Herring Prospectus, has flagged several risks that could impact its business operations and financial performance. Some of the key concerns include:
1. Market and economic volatility: “Factors beyond our control such as adverse market or economic conditions could affect our business, including by reducing the value of our assets under management, causing a decline in our management fees… and thereby, adversely affect our business, results of operations, financial condition and cash flows.”
2. Product underperformance: “If our investment products underperform, our assets under management… could decline and adversely affect our business, results of operations, financial condition and cash flows.”
3. Uncertainty of future growth: “Our historical performance is not indicative of our future growth and if we fail to manage our growth or successfully implement our growth strategies, our business… may be adversely affected.”
4. Competitive pressure: “Competition from existing and new market participants… could reduce our growth, market share or put downward pressure on our fees, which in turn could have an adverse effect on our business.”
5. Reputation risk linked to promoters: “We depend on the strength of brand and reputation of our Promoters… Any harm to the reputation of ICICI group entities or Prudential group entities could adversely affect our business.”