Excellent long-term prospects
ICICI Prudential AMC is a joint venture between ICICI (51%) and Prudential Plc Group (49%) and has been in the mutual fund business since 1988. The company’s activities include managing mutual funds, providing portfolio management services, managing alternative investment funds, and offering advisory services to offshore clients. It acts as the investment manager to ICICI Prudential Mutual Fund and has a growing alternates business across PMS, AIF, and offshore mandates. It offers a diverse range of savings and investment products across financial asset classes, catering to varied investor objectives and risk appetites.
As of FY25, ICICI AMC held a 13.3% share of India’s active mutual fund industry with a QAAUM of Rs 8.8 lakh crore. A CRISIL report shows its equity and equity-oriented QAAUM market share at 13.4%, the highest in the category. Its hybrid-equity funds also lead the industry by market share.
Offer details:
The offer is entirely an OFS, with Prudential offering 4.89 crore shares at an upper price band of Rs 2,165 (Face Value Re 1). The OFS represents around 10% of the company’s paid-up capital. At the upper price band, the company is valued at Rs 1.11 lakh crore (USD 12–12.5 billion).
| Particulars | ICICI Prudential AMC |
| Issue Open | 10-12-2025 |
| Issue Closes | 12-12-2025 |
| Issue Size (Rs crore) | 10,603 (OFS Only) |
| Fresh Issue | — |
| Offer for Sale | 10,603 |
| Face Value per Share (Rs) | 1 |
| Upper Issue Price Band (Rs) | 2,165 |
The company just before the OFS, in November 2025, issued bonus shares in the ratio of 1.8 shares for every share held. The shareholding pattern before OFS and after the OFS is as given in the attached table.
| Shareholder | Pre-OFS No. of Shares | Pre-OFS % | Post-OFS No. of Shares | Post-OFS % |
| ICICI Bank | 25,20,72,044 | 51.0% | 25,20,72,044 | 51.0% |
| Prudential Corporation | 24,21,86,476 | 49.0% | 19,32,13,482 | 39.1% |
| Public and Others | – | – | 4,89,72,994 | 9.9% |
| Total | 49,42,58,520 | 100.0% | 49,42,58,520 | 100.0% |
The ICICI Group has four listed entities, namely ICICI Bank, ICICI Prudential Life Insurance, ICICI Lombard General Insurance, and ICICI Securities. ICICI Bank has entered into a share purchase agreement to acquire an additional 2% stake in ICICI Prudential AMC from Prudential Corporation Holdings Limited for a cash consideration of about Rs. 2,140 crore. This acquisition will help ICICI Bank maintain its majority shareholding.
Once listed, ICICI Prudential AMC will become the sixth asset management company on stock exchanges, joining HDFC Asset Management Company (HDFC AMC), UTI Asset Management Company (UTI AMC), Aditya Birla Sun Life Asset Management Company (Aditya Birla Sun Life AMC), Shriram Asset Management Company (Shriram AMC), Nippon Life India Asset Management Company (Nippon Life AMC) and Canara Robeco Asset Management Company (Canara Robeco AMC).
Financial performance
The company has reported impressive financial performance with CAGR of over 32% in revenue and profitability between fiscal 2023 and 2025. This growth was achieved despite certain one-time expenditures, including a provision for goods and service tax (GST) liability for fiscal years 2018 and 2019, which resulted in rates and taxes rising to Rs. 52.1 crore for the financial year 2025 from Rs. 16.67 crore for the financial year 2024.
For the six months ended 30th September 2025, growth moderated in percentage terms due to a higher base. Revenue increased by 25% YoY to Rs. 2,733 crore, while profit after tax rose by 21.9% YoY to Rs. 1,618 crore.
(Rs. in crore)
| Financials for the year ended | Sep-25 | Sep-24 | Mar-25 | Mar-24 | Mar-23 | CAGR (%) FY25 |
| Number of months | 6 | 6 | 12 | 12 | 12 | |
| Revenue from operations | 2,733 | 2,187 | 4,683 | 3,376 | 2,689 | 32.0% |
| Net gains on fair value changes | 183 | 242 | 226 | 323 | 103 | 47.9% |
| Interest and dividend income | 33 | 29 | 68 | 58 | 44 | 23.8% |
| EBIDTA | 2,210 | 1,838 | 3,637 | 2,780 | 2,073 | 32.5% |
| Interest | 9 | 9 | 19 | 16 | 15 | |
| Depreciation | 52 | 41 | 85 | 66 | 51 | |
| Profit after tax | 1,618 | 1,327 | 2,651 | 2,050 | 1,516 | 32.2% |
| EBIDTA Margin (%) | 80.9% | 84.0% | 77.7% | 82.3% | 77.1% | |
| EPS (Rs.) | 32.7 | 26.9 | 53.6 | 41.5 | 30.7 |
Industry Outlook
The mutual fund assets under management (AUM) in India are projected to grow at over 17% CAGR between FY25 and FY30, rising from Rs. 67.4 trillion to around Rs. 150 trillion. The market share of the top 10 asset management companies (AMCs) has declined from 83% to 77%, as smaller AMCs are growing faster, with a CAGR of 27.6%.
Among bank-promoted AMCs, the top three – SBI Mutual Fund, ICICI Prudential Mutual Fund, and HDFC Mutual Fund – collectively control over 40% of the mutual fund market. SBI Mutual Fund leads with a 15.5% market share, followed by ICICI Prudential MF and HDFC MF.
Equity schemes have gained traction in recent years, at the expense of debt and liquid AUM. Systematic Investment Plan (SIP) AUM has grown from Rs. 4.3 trillion in FY21 to Rs. 13.4 trillion in FY25, reflecting a CAGR of over 25%. This growth is expected to continue, with SIP AUM projected to reach Rs. 44 trillion by 2030.
Household savings remain largely invested in bank deposits and life insurance funds, accounting for 64% of total savings in 2025. However, mutual funds have steadily increased their share of household savings from 8% to 12%, reflecting rising retail participation.
Peer comparison:
| For FY25 | ICICI Prudential AMC (ICICI AMC) | HDFC AMC | Nippon AMC | UTI AMC | Aditya Birla Sun Life AMC | Canara Robeco |
| Total income (Rs in Crore) | 4,977 | 3,498 | 2,231 | 1,851 | 1,685 | 404 |
| Earnings Per Share (Rs) | 53.6 | 58 | 20 | 57 | 32 | 10 |
| Market Share (%) as on 30th Sept 2025 | 13.2% | 11.5% | 8.5% | 4.9% | 5.5% | 1.3% |
| Face value (Rs) | 1 | 5 | 10 | 10 | 5 | 10 |
| Price/Earnings (P/E) Ratio | 40 | 45 | 40 | 20 | 23 | 30 |
| Current market Price (Rs) | 2,165 | 2,578 | 814 | 1,122 | 726 | 285 |
ICICI AMC is priced broadly in line with its large rivals, including HDFC AMC and Nippon AMC. Employee costs for ICICI AMC increased over 22% during fiscal 2023 to 2025, compared with 11.4% for HDFC AMC and 15.4% for Aditya Birla Sun Life AMC. The higher costs are attributed to a larger product profile, including Portfolio Management Services (PMS) and Alternative Investment Funds (AIF).
Risk Factors:
- Underperformance of ICICI AMC’s investment products could lead to a decline in assets under management (AUM) and adversely affect business performance.
- A significant portion of schemes has underperformed benchmarks over relevant periods. As of 30th September 2025, 17.1% of equity/equity-oriented AUM underperformed over three years, and 23.4% of liquid/overnight AUM underperformed over one year.
- The asset management industry is highly regulated, and any changes in fee structures could adversely impact both the industry and ICICI AMC.
- Competition from existing players and new entrants, such as JioBlackRock AMC, could negatively affect the company’s business.
The company’s shares are likely to list with moderate gains while its long-term growth prospects remain highly promising.
Disclaimer:
The writer is not a SEBI-registered analyst. He and his friends or relatives may or may not participate in the IPO. This article is intended purely for educational purposes. Investors are advised to consult their financial advisors before making any investment decisions. The grey market premium should be viewed only as an indicator and not as a reliable benchmark for listing performance.
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