ICICI Prudential AMC IPO Subscribed 72% on Day One; GMP Rises to ₹221

The Initial Public Offering (IPO) of ICICI Prudential Asset Management Company (AMC), India's largest asset manager by active mutual fund Quarterly Average Assets Under Management (QAAUM), opened for subscription on December 12, 2025, attracting measured investor interest amid a bustling primary market. Priced in a band of Rs 2,061 to Rs 2,165 per equity share, the Rs 10,602.65 crore issue is entirely an offer for sale (OFS) of up to 4.9 crore shares by promoter Prudential Corporation Holdings Limited, with no fresh capital raised for the company.

The minimum application size is one lot of six shares, requiring a minimum investment of Rs 12,366 at the upper price band for retail investors. Lead managers include Citigroup, Morgan Stanley, and ICICI Securities, with KFin Technologies as the registrar. The three-day subscription window closes on December 16, 2025, with allotment tentatively finalised on December 17 and shares listed on BSE and NSE on December 19. This IPO follows a robust Rs 3,022 crore anchor raise on December 11 from 149 investors, including Temasek, Capital Group, and domestic mutual funds, signalling strong institutional backing.

On the first day, the IPO achieved 72% overall subscription, equivalent to 0.72 times the offer size, reflecting cautious participation from retail and non-institutional investors while qualified institutional buyers (QIBs) remained subdued. Breakdown figures indicate retail individual investors (RIIs) subscribed 1.05 times their reserved portion, non-institutional investors (NIIs) at 0.85 times, and QIBs (excluding anchors) at 0.45 times, with employee and shareholder reservations seeing minimal uptake at 0.12 times and 0.18 times, respectively. This performance aligns with expectations for a large-ticket OFS in the asset management sector, where early momentum often builds toward the close as institutions deploy funds. The subscription data, tracked via BSE and NSE platforms, underscores retail enthusiasm driven by the company's brand equity, though the pace suggests room for acceleration in the coming days amid favorable market sentiment.

Grey market premium (GMP), a barometer of unofficial listing expectations, surged to Rs 221 per share by late afternoon on December 12, up from Rs 150 earlier in the day and implying a potential debut gain of about 10% at the upper price band, valuing shares around Rs 2,386. Earlier intraday readings fluctuated between Rs 153 and Rs 192, per trackers like InvestorGain, influenced by broader equity market resilience and sector tailwinds. GMP remains volatile and non-binding, often swayed by subscription trends and macroeconomic cues, but it points to moderate listing optimism for this high-profile issue. Analysts note that while the premium indicates positive sentiment, actual listing performance will hinge on final oversubscription levels and global risk appetite.

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ICICI Prudential AMC, a joint venture between ICICI Bank and Prudential PLC since 1993, commands a 13.3% market share in active mutual fund QAAUM, managing Rs 10.15 trillion in assets across 143 schemes as of September 30, 2025, with leadership in equity-oriented and hybrid categories. The company reported robust financials, with profit after tax rising 22% to Rs 1,618 crore and revenue up 20% to Rs 2,949 crore for the half-year ended September 2025, boasting an industry-leading return on equity of 82.8% in FY25.

Brokerages like SBI Securities and Emkay Global remain constructive, citing its diversified product suite, extensive distribution network spanning 272 branches, and growth in alternatives and offshore advisory (Rs 32,910 crore under advice). However, valuations at around 40 times FY25 earnings are seen as fully priced, positioning the IPO as a long-term play on India's mutual fund penetration, projected to expand with rising SIP inflows and AUM growth to Rs 53-56 trillion by 2030.

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