ICICI Prudential AMC Lists at 20% Premium; PL Capital Initiates Coverage with Buy, Target Price ₹3,000
- 19th December 2025
- 06:00 PM
- 3 min read
Summary
ICICI Prudential Asset Management Company made a strong debut on the stock exchanges, listing at a healthy premium to its issue price after a robust IPO subscription. With institutional demand driving the issue and grey market expectations broadly playing out, PL Capital has initiated coverage on the stock with a ‘Buy’ rating and a target price of ₹3,000, citing strong equity market share gains, earnings visibility and valuation comfort versus peers.Mumbai | December 19, 2025
Shares of ICICI Prudential Asset Management Company listed on the NSE and BSE at a premium of around 20% over the IPO issue price of ₹2,165, reflecting strong investor confidence in India’s largest active equity fund manager.
IPO Listing vs Grey Market Premium
Ahead of listing, ICICI Pru AMC was commanding a grey market premium (GMP) of ₹355–₹370, implying a 17–18% expected listing gain. The stock’s debut broadly validated these expectations, though market participants note that GMP is unofficial and only indicative in nature.
Strong IPO Response Set the Tone
The ₹10,602.65-crore IPO witnessed heavy institutional participation, with the issue subscribed 39.17 times, led by Qualified Institutional Buyers
Subscription snapshot:
- Qualified Institutional Buyers (QIBs): 123.87×
- Non-Institutional Investors (NIIs): 22.04×
- Retail Investors: 2.53×
- Overall subscription: 39.17×
What Should Investors Do Now?
While near-term stock performance may be influenced by broader market conditions, PL Capital believes ICICI Prudential AMC is well positioned for medium-to-long-term wealth creation, driven by rising financialisation, steady SIP inflows and expanding equity participation in India.
PL Capital Initiates Coverage with 3000 target price, implying about 38–39% upside from issue price
Key Investment Drivers
-Leadership in equity flows: ICICI Prudential AMC commands the highest net equity flow market share (~17%) among listed AMCs, driven by consistent fund performance and strong brand recall.
-Strong earnings visibility: PL Capital estimates ~18% revenue CAGR and ~18.5% core PAT CAGR over FY25–28E, the highest among listed peers, supported by operating leverage.
-Distribution edge: ICICI Bank’s wide distribution network remains a key advantage, with nearly three-fourths of MF sales through the bank routed to ICICI Pru AMC.
-Diversified revenue mix: A higher share of non-MF income (around 9%) from PMS, AIF and advisory businesses enhances yield stability and reduces dependence on MF fees.
-Valuation comfort: At IPO pricing, the stock traded at a discount to peers such as HDFC AMC and Nippon AMC, despite comparable or superior profitability metrics.
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About ICICI Prudential AMC
ICICI Prudential Asset Management Company is India’s largest active mutual fund manager by quarterly average assets under management. As of September 2025, the company managed around ₹10.14 lakh crore in AUM, translating into a 13.3% market share in the active fund category. The AMC is jointly owned by ICICI Bank (51%) and Prudential Corporation Holdings (49%).
ICICI Prudential AMC’s strong listing reflects both robust IPO fundamentals and confidence in the long-term growth of India’s asset management industry. With PL Capital initiating coverage with a ‘Buy’ rating, investor focus now shifts from listing gains to execution, earnings compounding and sustained market share expansion.
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