Listen to this article
India’s capital markets continue to witness strong participation, and high-quality financial services companies are increasingly tapping into the primary market.
In this environment, ICICI Prudential Asset Management Co. Ltd. (ICICI Prudential AMC)—one of India’s largest asset managers—is coming out with a sizeable public issue.
This review outlines the company’s business model, strengths, risks, and whether retail investors should consider applying. It also explains how investors can build long-term wealth without relying heavily on IPOs.
Table of Contents:
ICICI Prudential AMC Ltd – Company Overview
ICICI Prudential AMC Ltd IPO Issue Details
Strengths of ICICI Prudential AMC Ltd IPO
Weakness/Risk of ICICI Prudential AMC Ltd IPO
ICICI Prudential AMC Ltd IPO Key Performance Indicators
ICICI Prudential AMC Ltd IPO Financials Snapshot (₹ Cr) Review
IPO Investing – Is It the Right Long-term Strategy?
Mutual Fund Alternatives to Direct IPO Investing
1. Thematic Equity Funds – IPO Funds
2. Other Equity Mutual Funds (Diversified Funds)
Why Mutual Funds May Work Better Than IPO Chasing
Final Takeaway of ICICI Prudential AMC Ltd. IPO
ICICI Prudential AMC Ltd – Company Overview
Established in 1993, ICICI Prudential AMC is among India’s leading asset management companies, with a strong focus on long-term wealth creation supported by robust risk management practices.
As of September 30, 2025, the company manages an active quarterly average assets under management (QAAUM) of ₹10,147.6 billion, placing it among the country’s largest asset managers. It also operates the highest number of mutual fund schemes in India, comprising:
- 44 equity and equity-oriented schemes
- 20 debt schemes
- 61 passive schemes
- 15 domestic fund-of-funds
- 1 liquid, 1 overnight, and 1 arbitrage scheme
The company’s distribution footprint spans 272 offices across 23 states and 4 union territories.
Key Business Segments
i. Mutual Fund Business
Equity, debt, passive funds, ETFs, arbitrage, liquid and overnight schemes.
ii. Portfolio Management Services (PMS)
Includes Contra, PIPE, Growth Leaders, Value, Large Cap, and ACE strategies.
iii. Alternative Investment Funds (AIFs)
Category II and III AIFs are designed for sophisticated investors seeking diversified asset allocation.
ICICI Prudential AMC Ltd IPO Issue Details
| IPO Size | 4,89,72,994 shares (aggregating up to ₹10,602.65 Cr) |
| Price | ₹2061 to ₹2165 per share |
| Open | December 12, 2025 |
| Close | December 16, 2025 |
| Listing | BSE SME (December 19, 2025) |
| Minimum Investment | ₹1 per share,Minimum – Lot Size: 1 Lot = 6 Shares 🡪 ₹ 12,990
Maximum – Lot Size 15 Lots = 90 Share 🡪 ₹1,94,850 |
| Lead Manager | Citigroup Global Markets India Pvt. Ltd |
| Registrar | KFin Technologies Ltd. |
Reservation Pattern:
- QIB (Qualified Institutional Buyers): Not more than 50% of the net offer
- Retail Individual Investors (RII): Not less than 35% of the net offer
- Non-Institutional Investors (NII): Not less than 15% of the net offer
Reservation Rule:
| Application Category | Maximum Bidding Limit | Bidding at Cut-off Allowed |
| Only RII | Up to ₹2 lakhs | Yes |
| Only sNII | ₹2 lakhs to ₹10 lakhs | No |
| Only bNII | Above ₹10 lakhs (NII portion) | No |
| Only Shareholder | Up to ₹2 lakhs | Yes |
| Shareholder + RII/NII | Shareholder: up to ₹2 lakhs; RII/NII as per category norms | Yes, for shareholder/RII |
To be eligible for the Shareholder Quota, investors must hold shares in ICICI Bank Ltd.
Utilisation of Funds:
This IPO is a pure Offer for Sale, where existing shareholder Prudential Corporation Holdings will sell part of its stake. A portion of shares is reserved for eligible ICICI Bank shareholders.
ICICI Prudential AMC will not receive any proceeds. The proceeds go entirely to the selling promoter shareholder after expenses and taxes.
Strengths of ICICI Prudential AMC Ltd IPO
- Among the largest AMCs in India, with leadership across active mutual fund assets, equity AUM, and discretionary PMS for non-corporate clients.
- Strong retail franchise with high individual investor participation.
- Diversified product suite across asset classes and investor segments.
- Wide pan-India distribution network.
- Consistent investment performance backed by a strong investment and risk framework.
- Large alternates business with ₹638.7 billion QAAUM (AIF, PMS) as of March 31, 2025.
Weakness/Risk of ICICI Prudential AMC Ltd IPO
- Poor performance in investment products can lead to AUM decline, directly impacting revenue and profitability.
- High competition in the AMC space from existing players and new entrants.
- Significant dependence on brand strength; reputational issues at the ICICI Group or Prudential Group could affect business.
- Regulatory changes may impact fees, product design, or distribution.
- Dependence on third-party distributors means inflows can be influenced by external factors.
- High employee attrition (26%–33% over FY23–FY25) poses continuity and talent-retention risks.
ICICI Prudential AMC Ltd IPO Key Performance Indicators
FY 2025
| KPI | Value |
| Earnings Per Share (EPS) | ₹150.2 |
| Price/Earnings (P/E) Ratio | TBD |
| Return on Net Worth (RoNW) | 82.8% |
| Net Asset Value (NAV) | ₹199.2 |
| Return on Equity (RoE) | 82.8% |
| Return on Capital Employed (RoCE) | 85.50% |
| EBITDA Margin | 0.36% |
| PAT Margin | 53.25% |
| Debt to Equity Ratio | 0.25 |
| Metric | Pre IPO | Post IPO |
| EPS (₹) | 53.63 | 65.46 |
| P/E (x) | 40.37 | 33.07 |
ICICI Prudential AMC Ltd IPO Financials Snapshot (₹ Cr) Review
| Particulars | 31 Mar 2025 | 31 Mar 2024 | 31 Mar 2023 |
| Assets | 43,836.8 | 35,540.9 | 28,047.6 |
| Revenue | 49,796.7 | 37,612.1 | 28,381.8 |
| Profit After Tax | 26,506.6 | 20,497.3 | 15,157.8 |
| Reserves and Surplus (Other Equity) | 34,992.9 | 28,651.9 | 22,954.1 |
| Total Borrowings | – | – | – |
| Total Liabilities | 43,836.8 | 35,540.9 | 28,047.6 |
IPO Investing – Is It the Right Long-term Strategy?
IPOs attract massive interest, but they are inherently volatile and lack historical price data. Listing-day movements can be unpredictable—with nearly 1 out of 3 listings turning negative in 2025.
Key reminders:
- IPOs should not form the core of your investment strategy.
- Avoid leveraging or using borrowed funds.
- Do not invest money you cannot afford to lose.
- Allotment probability is often low in high-quality issues, leading to blocked funds and disappointment.
A more consistent way to participate in new listings is through mutual funds that invest in IPOs.
Mutual Fund Alternatives to Direct IPO Investing
1. Thematic Equity Funds – IPO Funds
IPO-focused schemes invest in the top 100 recently listed or upcoming IPOs, aiming to capture:
- Listing gains
- Post-listing growth
- Exposure to new-age businesses
These funds:
- Invest selectively in high-quality IPOs
- Maintain diversification
- Access anchor and QIB quotas (higher allocation than retail)
- Use research-driven selection instead of hype
Suitable for:
Investors who want IPO exposure but lack time or expertise to analyse each issue.
Examples:
- Edelweiss Recently Listed IPO Fund
- Mirae Asset BSE Select IPO ETF / ETF FoF
- Motilal Oswal BSE Select IPO ETF
Performance Snapshot (as of latest available)
Since this is a newly launched category, many funds have a limited performance history.
| Fund name | 1M | 3M | 6M | 1Y | 3Y | 5Y | 7Y | 10Y |
| Edelweiss Recently Listed IPO Reg | -3.88 | -5.83 | -0.37 | -9.35 | 15.1 | 15.26 | 17.28 | — |
| Mirae Asset BSE Select IPO ETF | -4.76 | -6.27 | -6.14 | — | — | — | — | — |
| Mirae Asset BSE Select IPO ETF FoF Reg | -4.77 | -6.28 | -7.03 | — | — | — | — | — |
| BSE 500 TRI | 0.04 | 2.58 | 1.54 | 1.87 | 14.93 | 17.18 | 16.05 | — |
2. Other Equity Mutual Funds (Diversified Funds)
Diversified equity funds indirectly gain exposure to strong IPOs based on the fund manager’s assessment. They offer:
- Professional research
- Better risk management
- Tax-efficient long-term investing
- Broad diversification beyond newly listed companies
Compared to direct IPO investing—which is concentrated and high-risk—equity funds provide a smoother, more disciplined path to wealth creation.
Why Mutual Funds May Work Better Than IPO Chasing
- No need to apply for dozens of IPOs with uncertain allotment
- No capital blockage
- Professional research filters out weak or overpriced IPOs
- Investments align with long-term compounding principles
- Automatically gain exposure to India’s emerging companies
Direct IPO investing brings excitement, but mutual funds convert opportunity into a structured wealth-building approach.
Final Takeaway of ICICI Prudential AMC Ltd. IPO
IPOs offer attractive opportunities, but they also carry significant uncertainty and require careful evaluation. For most retail investors, a portfolio-based approach through mutual funds offers a better balance of risk, return, and peace of mind.
Mutual fund managers assess business models, valuations, and long-term potential before entering any newly listed company.
By delegating research and decision-making to professionals, investors can participate confidently in India’s IPO growth story—without chasing allotments or navigating volatility.
Real wealth lies not in catching every IPO, but in investing consistently through equity mutual funds that combine research, diversification, and long-term growth potential.
Leave a Reply