The much-anticipated allotment process for the initial public offering (IPO) of ICICI Prudential Asset Management Company Ltd is taking place today, December 17. This follows the overwhelming response the issue received from investors, closing on Tuesday as one of the most subscribed IPOs in the history of the Indian capital markets.
Record-Breaking Subscription Numbers
The public offer, which was entirely an offer for sale (OFS) by promoter Prudential Corporation Holdings of the UK, witnessed massive demand across investor categories. The IPO was subscribed an impressive 39.17 times overall, with bids received for a staggering 137.15 crore shares against the 3.50 crore shares on offer.
The breakdown reveals where the strongest interest originated. The Qualified Institutional Buyers (QIB) segment led the charge, getting subscribed a phenomenal 123.87 times. Non-institutional investors also showed robust appetite, subscribing their portion 22.04 times. Retail Individual Investors (RIIs) participated actively, with their category seeing a subscription of 2.53 times.
Issue Details and Grey Market Premium
The IPO was priced in a band of ₹2,061 to ₹2,165 per share. At the upper end of the price band, the asset manager was valued at approximately ₹1.07 lakh crore. It is crucial to note that since the issue was a complete OFS, ICICI Prudential AMC will not receive any proceeds from the IPO; the funds will go to the selling shareholder.
In the unofficial grey market, the premium for the IPO shares remains strong. Market sources indicate the grey market premium (GMP) today stands at a high of ₹355. This suggests that shares are trading at a significant premium in the unofficial market. At this GMP, the estimated listing price could be around ₹2,520, which would represent a premium of roughly 16.40% over the upper price band.
Listing and Broader Implications
Successful allottees can expect the shares to be credited to their demat accounts shortly, with the official listing scheduled for December 19 on the stock exchanges. This listing will mark a significant milestone for the ICICI Group, as ICICI Prudential AMC will become the fifth listed entity from the conglomerate. It will join the ranks of ICICI Bank, ICICI Prudential Life Insurance, ICICI Lombard General Insurance, and ICICI Securities.
The IPO's success, garnering bids worth around 3 lakh crore, underscores the strong investor confidence in the asset management business model and the trusted brand value of the ICICI Group. The final allotment status will determine the distribution of shares among the millions of applicants who participated in this landmark offering.
