ICICI Prudential AMC Vs SBI AMC: Key Metrics Investors Should Know Before IPOs

ICICI Prudential AMC and SBI Funds Management, two of India’s largest asset management companies, have moved into the spotlight as both explore public market listings. While ICICI Prudential AMC has already secured the Securities and Exchange Board of India’s approval for a Rs 10,000-crore IPO, SBI AMC is still in the early stages of evaluating its listing strategy.

The potential dual listing of these giants comes at a time when the domestic mutual fund industry is expanding rapidly, driven by record SIP flows and strong retail participation.

In terms of performance, SBI AMC has marginally outpaced ICICI AMC in shorter time frames. However, ICICI AMC stands out decisively over longer horizons, demonstrating deeper consistency across its product suite.

Data comparing fund performance shows that on the basis of one-year returns, 97% of ICICI AMC’s AUM outperformed sector averages, compared with SBI AMC’s 100%.

Basis three years return, ICICI retained 95% outperformance, while SBI AMC dropped sharply to 49%. The trend continues basis five-year return, where ICICI AMC posted a robust 97% outperformance versus SBI AMC’s 50%. This highlights ICICI’s sustained long-term alpha generation, even as SBI AMC’s near-term strength remains notable.

Financial comparisons underline the scale and business model differences between the two. Based on fiscal year 2024 metrics, ICICI AMC’s implied market capitalisation is estimated between Rs 85,000 crore and Rs 1 lakh crore, while SBI AMC is expected to command a higher valuation in the range of Rs 1.30 lakh crore to Rs 1.39 lakh crore.

Yet, ICICI AMC generates stronger revenue and profitability relative to its AUM. Its revenue stands at 55 basis points of AUM compared with SBI AMC’s 33 basis points.

Similarly, ICICI AMC’s operating profit is 37 basis points of AUM, significantly higher than SBI AMC’s 24 basis points. Its net profit also leads at 33 basis points, compared with SBI AMC’s 25 basis points, reflecting stronger operating leverage and cost efficiency.

On the operating front, both companies delivered strong growth in fiscal 2024. ICICI AMC reported AUM growth of 41%, outpacing SBI AMC’s 32%, although both achieved identical equity AUM growth of 56%. In overall market share, SBI AMC leads at 16.9%, while ICICI AMC holds 12.7%, consistent with SBI’s position as India’s largest mutual fund house by assets.

As the country’s mutual fund industry continues to deepen, the potential listing of both entities marks an important milestone. Their performance records, financial strength and growth trajectories will be closely watched by investors looking to participate in the next phase of India’s asset management expansion.