ICICI Prudential AMC, India’s second-largest mutual fund house by assets, announced a Rs 10,600 crore initial public offering (IPO) with a price band of Rs 2,061 to Rs 2,165 a share. The offer will open for subscription from December 12 to 16, with trading expected to begin on December 19.
ICICI Bank, which holds 51% of the equity shares of the company, and remaining held by Prudential Corporation Holdings. Proceeds from the IPO will go entirely to Prudential, as the issue is structured as a 100% offer for sale (OFS). A transfer of a further 2% stake by Prudential is imminent, the AMC’s management said.
What did Nimesh Shah say?
“We are the most profitable AMC and the largest in India in terms of active AUM,” said Nimesh Shah, managing director and chief executive (CEO), a former chairperson of industry body AMFI. “Full credit of the industry’s growth goes to the regulator,” he said.
The Indian mutual fund industry’s assets have expanded sixfold to Rs 79.88 lakh crore as of October 31, 2025, from Rs 13.24 lakh crore a decade earlier. The Securities and Exchange Board of India (Sebi) is consulting the industry on proposed changes to the MF fee structure.
INUSA group on the upcoming IPO
“Indian mutual fund houses are lining up for IPOs. Public markets may demand profit growth, not necessarily better investor outcomes,” said California-based investor INUSA Group. Going public can help in “more transparency on AMC profitability and stronger corporate governance (LODR rules),” it said.
Chairman Sandeep Batra said the AMC will continue to operate as a subsidiary of ICICI Bank. “MFs are emerging as preferred vehicles of investment. We are committed to this change,” he said.
The four largest fund houses — SBI, ICICI, HDFC and Nippon — together control more than half the market. The State Bank’s AMC, the largest in industry, is planning to list in the first half of 2026. HDFC AMC and Nippon Life India AMC are already traded.
Other listed players include UTI AMC, Aditya Birla Sun Life AMC, Shriram AMC and Canara Robeco AMC. Canara Robeco debuted on October 16 at a 5.3% premium to its IPO price after receiving nearly 10 times subscription.
The ICICI Prudential AMC offer is the largest among roughly 25 IPOs expected to raise nearly $5 billion in December, in what is shaping up to be a record year for listings. “While valuations are often rich, India’s IPO market is vibrant and driven by domestic liquidity,” said Samir Agarwal, an investment banker.