ICICI Prudential Asset Management Co. is set to list on Friday, Dec. 19, after a successful fundraise via IPO. The allotment of shares was finalised on Wednesday.
The portion for retail investors was subscribed 2.53 times, as investors placed bid worth Rs 8,933 crore for 4.12 crore shares against an offer of 1.6 crore shares.
Analysts at brokerage firm Prabhudas Lilladher have placed a 'buy' rating and a bullish price target of Rs 3,000 on the ICICI Prudential AMC stock, indicating a 39% upside to the IPO price of Rs 2,165.
The IPO price suggests a valuation that is 17% and 16% discount to close peers HDFC Asset Management Co. and Nippon Life India Asset Management Ltd.
"We are optimistic about its business prospects given its strong performance and parentage which is driving the highest net equity flow market share among AMCs, its superior equity yields of 67 bps due to lowest distributor payout, 74% share in MF sales by ICICI Bank due to the latter's closed architecture, and a higher share of non-MF revenue at 9.2% among peers," the brokerage said.
Earnings Growth
ICICI Prudential AMC is the second largest in India by overall asset book and market share of 13.2% as of November. It is the largest equity AMC with active equity of Rs 6.12 lakh crore and market share of 13.8%.
Prabhudas Lilladher estimates revenue CAGR of 18% over the next three year. Driven by healthy average AUM CAGR of 21.3% due to strong equity growth, analysts expect core profit CAGR of 18.5% during the period, the best among listed peers.
ICICI Prudential AMC IPO GMP
The latest grey market premium (GMP) for the ICICI Prudential AMC IPO was Rs 370 per share, as per Investorgain. Compared to the IPO price of Rs 2,165, the latest GMP indicates an estimated listing price of Rs 2,535 apiece, a premium of 17%.
Note: GMP does not represent official data and is based on speculation.
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