investing in ipo
The IPO of ICICI Prudential Asset Management Company (AMC) is continuously receiving tremendous response from institutional investors. The Qualified Institutional Buyers (QIB) portion was fully subscribed on the first day of the issue. On the first day, bids worth about Rs 5,490 crore were received against the total bid of Rs 7,581 crore. The IPO is 72 percent filled on the first day.
The QIB category received a response of 1.97 times which underlines the strong confidence of institutional investors in the long-term business principles of the company. Other investor categories also saw a rise, with a response of 0.37 times in the non-institutional investor (NII) category, 0.21 times in the retail individual investors and 0.44 times in the reserved category.
Investors showed interest
This strong response resulted in strong interest from leading global and domestic investors in the pre-IPO and anchor book. Ahead of the IPO, ICICI Prudential AMC raised Rs 3,021.8 crore from 149 anchor investors by allotting about 13.95 million equity shares at Rs 2,165 per share. The anchor book included leading sovereign wealth funds such as GIC, Temasek and Lunet, global asset managers such as Fidelity, BlackRock, Norges Bank, Aberdeen, Wellington, Capital Group, JP Morgan Asset Management, Goldman Sachs Asset Management and HSBC Global Asset Management, as well as private equity investors such as Kedra Capital and ChrisCapital.
Participation from domestic investors was equally strong, including investments from leading family offices and experienced investors like Premji Invest, HCL Family Office, Prashant Jain (3PIM), Manish Chokhani, the estate of late Rakesh Jhunjhunwala and MK Ventures. All major domestic life insurance companies including SBI Life, HDFC Life, Kotak Life, Aditya Birla Sun Life Insurance and Bajaj Life participated in the anchor book. Additionally, 27 domestic mutual funds invested through 77 schemes, in which 19 of the top 20 mutual fund houses participated.
Pre-IPO Placement
The company had also completed pre-IPO placement of about Rs 4,815 crore before the IPO, indicating strong demand ahead of the issue. With a valuation of Rs 107,000 crore after listing, the P/E ratio will be 40.4 times on FY2025 earnings and 33.1 times on H1FY26 annual numbers. This gives a discount of more than 10% to HDFC AMC (45.5 times) for FY2025 and about 16% to its annual net profit for H1FY2026.
If valued after deducting cash on balance sheet, the proposed valuation would be 32.1 times on FY2025 earnings and 26.9 times on H1FY2026 annual numbers. This gives a discount of 16% to HDFC AMC (38.2x) for FY2025 and about 26% discount to the annual PAT for H1FY2026. The IPO issued by promoter Prudential Corporation Holdings Limited opens on December 12, 2025 and will close on December 16, 2025. At the upper end of the price range, the issue size is around ₹10,602 crore. Investors can bid for a minimum of six equity shares and thereafter can bid in multiples.
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