ICICI Pru AMC
IPO Size: Rs. 10,603 cr, Entirely Offer for Sale (OFS)
- By foreign promoter Prudential (44.5% stake to drop to 34.6%)
Price band: Rs. 2,061-2,165 per share
- On 9th Dec 2025, Prudential did Rs. 4,185 cr pre-IPO secondary sale of 4.5% equity to ICICI Bank and other investors at Rs. 2,165 per share
M cap: Rs. 1.07 cr, implying 9.9% dilution
IPO Date: Fri 12th Dec to Tue 16th Dec 2025, Listing Fri 19th Dec 2025
Grey Market Premium (GMP): We are strongly against ‘grey market premium’ as it is an unofficial figure, against SEBI guidelines.
India’s 2nd Largest AMC
ICICI Prudential Asset Management Company (AMC), 53% subsidiary of ICICI Bank Limited, is India’s 2nd largest AMC, after SBI, with mutual fund quarterly average assets under management (AUM) of Rs. 10.1 lakh cr, in Q2FY26. Known for equity-oriented hybrid schemes, company’s distribution mix for equity schemes is 73:27 between distributors and direct.
India’s Most Profitable AMC
While share of equity at 56% of mix is in-line with industry, largest individual investors of 1.55 cr and largest market share of 13.3% in active AUM makes ICICI Prudential India’s most profitable AMC, with 20% operating profit market share.
H1FY26 PAT of Rs. 1,618 cr is higher than both SBI Funds’ Rs. 1,586 cr and HDFC AMC’s Rs. 1,466 cr. ICICI Prudential AMC’s H1FY26 revenue was at Rs. 2,948 cr, translating into a yield (revenue as % to AUM) of 52 bps, operating PBT (excluding investment income) yield of 37 bps and PAT yield of 32 bps.
Bigger than HDFC AMC
Due to its size and profitability, ICICI Prudential must be compared only with HDFC among the listed AMCs. SBI Funds is not yet listed.
| Particulars |
| ICICI Pru AMC | HDFC AMC | ||
|
|
| H1FY26 | FY25 | H1FY26 | FY25 |
| AUM | Rs cr | 10,14,760 | 8,79,410 | 8,81,400 | 7,74,000 |
| Revenue | Rs cr | 2,948 | 4,977 | 2,324 | 4,060 |
| - non-operating income | % revenue | 6% | 5% | 14% | 14% |
| Operating PBT | Rs cr | 1,933 | 3,236 | 1,533 | 2,726 |
| Operating Profit Yield | % AUM | 0.30% | 0.29% | 0.28% | 0.27% |
| PAT | Rs cr | 1,618 | 2,651 | 1,466 | 2,460 |
| Profit Yield | % AUM | 0.32% | 0.30% | 0.33% | 0.32% |
| Mcap | Rs cr | 1,07,007 |
| 1,14,062 |
|
| - % AUM |
| 10.5% |
| 12.9% |
|
| PE | FY26E | 32x |
| 37x |
|
ICICI Prudential AMC’s H1FY26 AUM is 15% higher than HDFC AMC’s, with operating PBT 26% higher and PAT 10% higher. Yet former’s m cap of Rs. 1.07 lakh cr is 6% lower. While HDFC brand premium exists, ICICI Prudential AMC’s strong fundamentals deserves a similar market cap, if not more.
Does Pricing factor in Regulatory and Compliance Risks?
Regulatory risks, such as potential cap on total expense ratio (TER) that AMC can charge customers may lead to margin compression in the short term. Also, stringent compliance burden for actual execution of expenses, exit load, partial redemption, data privacy etc.
But, in the long term, Indian mutual fund industry is here to stay and thrive, given single-digit penetration, with decline in margins, possibly compensated by volumes. So, the question boils down to sustainability of PE multiples?
Shareholder Friendly Pricing
ICICI Prudential AMC IPO is priced at current year PE multiple of 32x, lower than HDFC AMC’s 37x. This is seen attractive for asset-light business, most profitable player in the industry and huge opportunity in the under-penetrated sector. Of the 51 AMCs, top 8 control nearly 80% of AUM, indicating no entry barriers but performance and trust built over the years remain vital for growth.
