The mega ICICI Prudential AMC IPO will finally make its debut on the exchanges today. The issue has become the fourth most subscribed IPO in India and is backed by strong performance and parentage. Its highest net equity flow market share of 17.5% in 8MFY26 among AMCs and its superior equity yields of 67 bps are driving the optimism on the street.
ICICI Prudential AMC accounts for 73.7% of MF sales by ICICI Bank due to the latter’s closed architecture and commands a higher share of non-MF revenue at 9.2% among peers. The GMP too for the Rs 10,602.65 crore issue has been trending higher. It is up 24% now from the high teens seen earlier this week. However, readers must remember that the GMP is only an indicative price, and the actual listing could be significantly different.
Will Will ICICI Prudential AMC IPO deliver a surprise on listing day?
Let’s take look at what top market experts have to say, in terms of their expectation from ICICI Prudential AMC –
ICICI Prudential AMC: Long-term promising, listing pop unlikely
Speaking on the issue, well-known fund manager and industry veteran Sandip Sabharwal of Asksandipsabharwal.com pointed out that “ICICI Prudential AMC is a good asset manager with stable performances and asset growth over the years. However, IPO valuations are extended, and as such immediate post-listing pop is unlikely. It should do well over time.”
ICICI Prudential AMC: Likley to list at a premium
Sunny Agrawal – Head of Fundamental Research, SBI Securities believes that the issue may list at a premium, “Likely by 10-15%. SEBI regulations pertaining to reduction in TER may dampen sentiments marginally, as this may impact profitability in the short term. Long-term growth prospects still remain healthy. Also, overall changes are better than street expectations; hence, the market may give thumbs up to the AMC pack.”
Speaking on the overall valuation of ICICI Prudential AMC and how it stacks up compared to peers, Agrawal said that “at the upper price band, it is trading at H1FY26 PE multiple of 33x Vs HDFC AMC at 38x and NAM India at 37x.”
ICICI Prudential AMC: Valuations at discount to leading industry peers
Overall performance wise, the ICICI Prudential AMC has shown the best performance in the 1-year bucket while being ranked consistently among the top 3 in the 3-year bucket since February 2022. Sneha Poddar, VP at Motilal Oswal expects the IPO “Should see a good listing. Valuation-wise, it’s at a discount to HDFC AMC.” She was alluding to the company’s strong fundamentals and distribution strength to drive the performance on the stock exchanges.
ICICI Prudential AMC: Promising outlook over longer term
Sunil Jain, HOD Retail Research Nirmal Bang, too, reiterated the expectations of a strong listing based on the valuation advantage and promising longer-term outlook offered by this key offering from the ICICI Group. According to him, “Overall valuations are lower than the peers. Listing should be good, and the long-term outlook is positive.”
According to calculations by most analysts, the valuations at the issue price of Rs 2,165 is hovering around the 30x mark, and this is seen as a significant discount to peers like HDFC AMC and NAM. However, many believe that eventually ICICI Prudential AMC may command a premium to its peers due to better distribution and diversification while having similar profitability. The diversified revenue stream is also seen as an advantage.