Shares of ICICI Prudential Asset Management Company (AMC) made a blockbuster entry into the stock market on Friday, opening at a significant premium over its issue price. The stock, however, witnessed profit booking soon after its strong debut, presenting a potential entry point for long-term investors, according to market experts.
A Bumper Debut Followed by Profit Booking
The much-anticipated listing saw ICICI Prudential AMC share price open at a bumper 20% premium on both major exchanges. On the Bombay Stock Exchange (BSE), the stock commenced trading at ₹2,606.20 per share. Simultaneously, on the National Stock Exchange (NSE), it listed at ₹2,600 apiece.
However, the initial euphoria was tempered as the stock could not maintain those elevated levels. It came under selling pressure from investors looking to book profits after the stellar listing gain. Within the first hour of trade, the scrip touched an intraday low of ₹2,575 on the NSE and ₹2,573.90 on the BSE.
Expert Analysis: A Long-Term Compounder, Not a Sprint Stock
Market analysts viewed this price dip as a potential opportunity for investors who missed out on the initial public offering (IPO). However, they unanimously emphasized that this is a stock for patient, long-term portfolios.
Harshal Dasani, Business Head at INVAsset PMS, highlighted that the IPO's success was driven by institutional conviction. "Retail participation remained muted throughout the subscription period, partly due to fluctuating grey-market premiums and uncertainty surrounding near-term listing gains," he said. "The strong demand from qualified institutional buyers (QIBs) tells a very different story, underlining confidence in the company’s long-term business model."
Advising investors to buy and hold, Dasani described ICICI Prudential AMC as a "tortoise in the portfolio—slow, steady, and resilient." He pointed to its fundamental strengths: a robust balance sheet, solvency position above regulatory requirements, and disciplined cost management that supports stable returns.
Ravi Singh, Chief Research Officer at Master Capital Services, echoed the long-term view, citing favourable sectoral tailwinds. "With rising penetration of mutual funds, steady SIP inflows and increasing preference for professionally managed assets, the sector’s growth outlook remains favourable," he stated. He identified the company's strong distribution network and focus on profitability as key strengths for compounding wealth over time.
Investment Strategy: Hold, Buy on Dips, or Book Profits?
Experts offered varied strategies based on investor profiles. Prashanth Tapse, Research Analyst at Mehta Equities, recommended that allottees hold their shares for the long term. He cited the company's strong pedigree, digital adoption, and dominant market position in India's growing wealth management landscape.
For those who did not receive an allotment, Tapse advised caution. "We advise against chasing the stock on listing day and suggest waiting for more reasonable entry levels post listing," he said, noting that near-term volatility is likely.
Shivani Nyati, Head of Wealth at Swastika Investmart, provided a tactical view. "Short-term investors and traders may consider booking profits after the strong listing gains, while long-term investors may hold the position," she suggested, advising a stop-loss near ₹2,350 to manage downside risk.
Adding a bullish target, brokerage firm Prabhudas Lilladher has assigned a 'buy' rating to the stock with a price target of ₹3,000 per share.
Disclaimer: The views and recommendations above are those of individual analysts or broking companies. Investors are advised to consult certified experts before making any investment decisions.
