ICICI Prudential AMC IPO Gains Momentum as Grey Market Premium Rises to 11%

The much‑anticipated initial public offering (IPO) of ICICI Prudential Asset Management Company (AMC) continues to attract strong investor interest, with its grey market premium (GMP) rising to 11 per cent, an increase of 5 percentage points following robust demand from anchor investors.

On its opening day, the IPO — the fourth largest public issue of 2025 — was 73 per cent subscribed, reflecting solid institutional and retail participation.

Aiming for a ₹1.07 Trillion Market Capitalisation

ICICI Prudential AMC is targeting a market valuation of ₹1.07 trillion, positioning it slightly below HDFC AMC, which commands a market cap of ₹1.15 trillion.

Despite this, the IPO stands out due to its attractive pricing. On a price‑to‑earnings (P/E) basis, the issue is priced at a 10 per cent discount to its closest peer, HDFC AMC.

Why Investors Are Taking Notice

Market analysts highlight several structural advantages that position ICICI Pru AMC ahead of its peers:

1. Highest Share of Active Assets in the Industry

ICICI Pru AMC leads the mutual fund industry in active asset management — a segment known for better fee yields and higher comparative profitability.

2. Strong Revenue and Profitability Metrics

The AMC has consistently delivered strong topline growth, driven by scale, diversified product offerings, and a rising SIP (Systematic Investment Plan) book.

3. Superior Margins and Return on Equity

Analysts point out that ICICI AMC maintains industry‑leading margins and higher return on equity (RoE) — key metrics that enhance investor confidence during valuations.

Deven Choksey Research noted:
“Given ICICI Pru AMC’s leadership in high‑growth segments and strong profitability, the IPO pricing is expected to command a justified premium relative to the peer group average.”

Outlook: A Strong Contender in the AMC Landscape

With a blend of brand strength, robust financial performance, and favorable pricing, ICICI Prudential AMC is emerging as one of the strongest IPO candidates in the financial services sector this year. The positive movement in the grey market further indicates strong expectations of listing gains.

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