The much-anticipated listing of ICICI Prudential Asset Management Company is finally here. The initial public offering (IPO) of one of India's largest asset managers is set to debut on the stock exchanges today, Friday, December 19, generating significant excitement among investors and market participants.
Strong Grey Market Sentiment and Brokerage Confidence
Ahead of the official listing, the grey market premium (GMP) for ICICI Prudential AMC shares has painted a very bullish picture. According to reliable market sources, the GMP has surged to its highest level yet at ₹520. This robust premium indicates that shares are trading significantly above the official offer price in the unofficial market.
Based on this GMP, analysts project the stock could list at approximately ₹2,615, which would represent a handsome premium of around 24% over the upper end of the IPO price band. In simple terms, the grey market is signaling a potential listing price near ₹2,685.
Adding to the positive sentiment, brokerage firm Prabhudas Lilladher (PL) Capital has initiated coverage with a strong 'buy' recommendation. They have set an ambitious share price target of ₹3,000. The brokerage expects ICICI Prudential AMC to outperform its competitors, forecasting its equity average assets under management (AUM) growth to be 2.5% higher than the industry average between the financial years 2025 and 2028. This is predicted to translate into a powerful 18.5% compound annual growth rate (CAGR) in core profit after tax (PAT).
IPO Details and Subscription Frenzy
The public offer, which was open for subscription from December 12 to December 16, witnessed an overwhelming response from investors across categories. The overall issue was booked a massive 39.17 times. The breakdown of subscription reveals intense interest:
- Qualified Institutional Buyers (QIBs): Subscribed 123.87 times.
- Non-Institutional Investors (NIIs): Subscribed 22.04 times.
- Retail Individual Investors (RIIs): Subscribed 2.53 times.
The IPO price band was fixed at ₹2,061 to ₹2,165 per share, which valued the company at nearly ₹1.07 lakh crore. It is crucial to note that this IPO was entirely an Offer for Sale (OFS) by the UK-based promoter, Prudential Corporation Holdings. Consequently, the company will not receive any fresh proceeds from this offering; the funds will go to the selling shareholder.
A New Listing for the ICICI Group
Today's listing marks a significant milestone for the ICICI group. ICICI Prudential AMC will become the fifth company from the ICICI stable to get listed on Indian bourses. It joins the ranks of other group giants like:
- ICICI Bank
- ICICI Prudential Life Insurance
- ICICI Lombard General Insurance
- ICICI Securities
The successful listing is being closely watched as a barometer for investor appetite in the financial services and asset management sector. All eyes are now on the opening bell to see if the live market performance aligns with the optimistic signals from the grey market and brokerages.
