ICICI Prudential AMC IPO: 10 Key Things To Know Before Rs 10,603-Crore Issue Opens — Anand Rathi Report

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Anand Rathi Report

Here are the 10 things to know before investing in ICICI Prudential AMC IPO

1. ICICI Prudential Asset Management Company Ltd. will launch its initial public offering on December 12 and the offer closes for subscription on Dec. 16.

2. India’s largest asset manager by active QAAUM with a 13.3% market share has fixed the price band in the range of Rs 2,061 to Rs 2,165 per equity share with a face value of Rs 1.

3. The Rs 10,602.7-crore issue is an entirely offer-for-sale of 4.9 crore shares. Since the IPO is entirely an OFS, proceeds from the offer will go directly to the selling shareholders.

4. To participate in the IPO, retail investors are required to bid for a single lot size of six shares, amounting to a minimum investment of Rs 12,990 per application based on the upper limit of the issue price.

5. Citi Group Global Markets, Morgan Stanley are the book-running lead managers for the public issue while Kfin Technologies is the registrar to the offer.

6. Competitive Strengths:

• Largest asset management company in India in terms of assets managed under active mutual fund schemes and equity and equity-oriented schemes.

• Largest Individual Investor franchise in India in terms of mutual fund assets under management.

• Diversified product portfolio across asset classes.

• Pan-India, multi-channel and diversified distribution network.

• Investment performance supported by comprehensive investment philosophy and risk management.

• Consistent profitable growth.

• Trusted brand and strong culture.

7. Key Strategies:

• Maintain focus on investment performance with a risk calibrated approach.

• Expand the customer base through distinct initiatives, increase penetration in existing and new markets and strengthen relationships with the distributors.

• Grow Alternates business.

• Diversify product portfolio to suit dynamic customer needs.

• Leverage the technology and scale digital capabilities to drive customer acquisition, enhance customer experience.

8. Peer Comparison:

As of September 2025, ICICI Prudential AMC was the second-largest AMC in terms of QAAUM, with a market share of 13.2%. Its QAAUM stood at Rs 10,147.6 billion, growing 20.6% year-on-year, faster than the industry growth of 16.5% during the same period.

This strong performance follows the trend of the past two fiscal years (FY 2023–FY 2025), when its QAAUM grew at a CAGR of 32.7%, compared to the industry’s 29.0%.

ICICI Prudential AMC has consistently been among the top two AMCs in India from March 2022 to September 2025.

The other few listed entities in AMC space are HDFC AMC, Nippon Life AMC, UTI AMC etc.

9. Key Risk:

• Competition from existing and new market participants offering investment products could reduce the growth, market share or put downward pressure on the fees, which in turn could have an adverse effect on our business, results of operations, financial condition and cash flows.

• They operate in a highly regulated industry, and any breach of applicable regulations may lead to adverse action by the regulator. Further, changing laws, rules and regulations as well as legal uncertainties in India may adversely affect our business, results of operations, financial condition and cash flows.

• They depend on the services provided by certain third parties, including distributors, for our operations. Any deficiency or interruption in their services could adversely affect our operations and reputation.

• Impact of changes to the regulations on the total expenses ratio for the schemes introduced by the funds managed by them could adversely affect the business, results of operations, financial condition and cash flows and cause them to decrease marketing and other efforts on behalf of the funds.

• They require certain statutory and regulatory licenses and approvals to conduct their business and an inability to obtain, retain or renew such licenses and approvals could have an adverse effect on the business, financial condition, results of operations and cash flows.

• ICICI Prudential AMC highlights that insurance products such as unit-linked investment products (ULIPs), which provide dual benefits of protection and long-term savings, are competing for market share with mutual funds. Competition from existing and new market participants offering investment products could reduce growth, market share or put downward pressure on the fees.

• A shift towards ETFs can lead to slower overall topline growth for AMCs, as they may see a decline in AUM in actively managed funds and a corresponding increase in AUM in ETFs, said the company.

• Change in global macros can impact capital market activities which may affect investor sentiment and business growth.

• Adverse market conditions due to a slowdown may affect capital market activities, consequently it may also impact revenues of the company.

10. Industry Overview:

In terms of QAAUM, the market share of top 10 AMCs decreased from 82.7% as of March 2021 to 76.9% as of March 2025. As of March 2025, there were 49 registered mutual funds in India, and as of September 2025, the number of registered Mutual funds in India increased to 54.

Passive funds are gaining popularity due to increased investor awareness, lower costs and ease of investment.

Robust economic growth, under penetration of mutual funds in India, financialization of savings, increasing participation of retail investors, favourable demographics, increased awareness of investors, and easy accessibility via increased digitalisation due to mobile penetration are the key growth drivers for the mutual fund industry.

Valuation & Outlook:

ICICI Prudential, with a strong market share, is among the most profitable AMCs in the industry valued at ~40x P/E on FY25 earnings (at the upper band) which is fair as compared to leading players (HDFC AMC and Nippon Life AMC).

Considering the company’s consistent track record and superior financial metrics, the valuation is fully priced in.

Hence, we recommend subscribing to the IPO from the medium to long-term perspective.

Click on the attachment to read the full IPO report:

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