Categories: IPO Review

ICICI Prudential AMC Ltd IPO Review – Should You Invest?

icici prudential amc ipo

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.

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.