ICICI Prudential AMC IPO Overview
Mumbai-based India’s largest AMC raising ₹10,602.65 cr (100% OFS by Prudential Corporation Holdings). Price: ₹2,061-2,165. Lot: 6 shares (₹12,990 min).
Lead: Citigroup, Morgan Stanley, BOFA, Axis, 11 others.
Founded 1993 (ICICI Bank + Prudential Plc JV). India’s largest by active MF QAAUM (₹10.15 lakh cr, 13.3% market share, Sep 2025).
143 schemes (largest in India): 44 equity, 20 debt, 61 passive, 15 FoF. 1.55 cr investors.
Services: Mutual Funds, PMS, AIF, offshore advisory. 272 offices, 110,719 distributors.
Competes with HDFC AMC, Nippon, UTI, Aditya Birla, SBI.
IPO DETAILED INFORMATION
Issue Details
| Parameter | Details |
| IPO Type | Mainboard |
| IPO Open Date | 12 December 2025 (Friday) |
| IPO Close Date | 16 December 2025 (Tuesday) |
| Anchor Investor Bidding | 11 December 2025 (Thursday) – Completed |
| Allotment Date | 17 December 2025 (Wednesday) – Expected |
| Credit to Demat | 18 December 2025 (Thursday) – Expected |
| Refund Initiation | 18 December 2025 (Thursday) – Expected |
| Listing Date | 19 December 2025 (Friday) – Tentative |
| Price Band | ₹2,061 – ₹2,165 per share |
| Face Value | ₹1 per share |
| Lot Size | 6 shares (minimum lot) |
| Min Investment (Retail) | ₹12,990 (6 shares at upper band ₹2,165) |
| sNII Investment | ₹2,07,840 (16 lots / 96 shares) minimum |
| bNII Investment | ₹10,00,230 (77 lots / 462 shares) minimum |
| Issue Size | ₹10,602.65 crore total |
| Fresh Issue | NIL – No fresh issue |
| Offer for Sale (OFS) | ₹10,602.65 crore (100%) – 4,89,72,994 shares by Prudential Corporation Holdings |
| Total Shares Offered | 4,89,72,994 equity shares |
| Listing | BSE & NSE (Mainboard) |
| Post-Issue Market Cap | ₹1,07,006.97 crore (at upper price band) |
| Pre-Issue Shareholding | ICICI Bank 51%, Prudential 49% |
| Post-Issue Shareholding | ICICI Bank 51%, Prudential 39.09%, Public 9.91% |
Issue Break-up
| Category | Allocation |
| QIB (Qualified Institutional Buyers) | 50% of Net Offer |
| NII (Non-Institutional Investors) | 15% of Net Offer |
| Retail Individual Investors | 35% of Net Offer |
| Shareholder Reservation | Available for eligible shareholders |
Selling Shareholders (OFS ₹10,602.65 crore)
100% Offer for Sale – No Fresh Issue:
- Prudential Corporation Holdings Limited – Selling 4,89,72,994 equity shares
- Pre-IPO holding: 49% (Prudential Plc subsidiary)
- Post-IPO holding: 39.09%
- Exiting 9.91% stake for ₹10,602.65 crore
Note: Entire IPO is OFS – all proceeds go to Prudential Corporation Holdings, zero funds to company. ICICI Bank retains 51% holding (no sale).
Objects of the Issue (Fund Utilization)
Since this is 100% Offer for Sale (OFS), the company will NOT receive any proceeds from the IPO.
All ₹10,602.65 crore proceeds will go directly to the selling shareholder:
- Prudential Corporation Holdings Limited (Prudential Plc subsidiary)
Objective of the IPO (as stated in RHP):
- Achieve benefits of listing the Equity Shares on the stock exchanges
- Enhance visibility and brand perception among investors and stakeholders
- Provide liquidity and exit route to existing shareholder (Prudential)
- Enable price discovery and market-driven valuation
Company Will NOT Use IPO Proceeds For:
- Capacity expansion
- Debt repayment
- Working capital
- Acquisitions or capex
Note: Pure OFS structure means promoter Prudential Corporation Holdings is partially exiting (reducing from 49% to 39.09%) after 32 years. ICICI Bank retains 51% majority, not selling any stake.
Lead Managers & Registrar
Book Running Lead Managers (BRLMs) – 14 Managers:
- Citigroup Global Markets India Private Limited
- Morgan Stanley India Company Private Limited
- BOFA Securities India Limited
- Axis Capital Limited
- CLSA India Private Limited
- IIFL Capital Services Limited
- Kotak Mahindra Capital Company Limited
- Nomura Financial Advisory and Securities (India) Private Limited
- SBI Capital Markets Limited
- ICICI Securities Limited
- Goldman Sachs (India) Securities Private Limited
- Avendus Capital Private Limited
- HDFC Bank Limited
- JM Financial Limited
- Motilal Oswal Investment Advisors Limited
Registrar:
- Kfin Technologies Limited
- Phone: +91-40-6716 2222
- Email: [email protected]
- Website: www.kfintech.com
Promoters & Management
Key Promoters (2 Corporate Promoters – 51-49 JV):
- ICICI Bank Limited – 51% Promoter (Pre & Post-IPO)
- India’s leading private sector bank
- Founded ICICI Prudential AMC in 1993
- Not selling any stake in IPO – retaining majority control
- Prudential Corporation Holdings Limited – 49% Pre-IPO, 39.09% Post-IPO
- Subsidiary of Prudential Plc (UK-based global insurance/asset management leader)
- Co-founded ICICI Prudential AMC in 1993
- Selling 9.91% stake (₹10,602.65 cr) in IPO for partial exit
Company History:
- Incorporated: 1993 as joint venture between ICICI Bank and Prudential Plc
- Legacy: 32 years in Indian asset management industry
- Vision: Deliver long-term returns while managing risk-first for investors
- Growth Journey:
- 1993: Inception as one of India’s pioneering private AMCs
- Scaled to India’s largest AMC by active MF QAAUM (₹10.15 lakh cr, 13.3% market share as of Sep 2025)
- Built India’s largest scheme portfolio: 143 schemes (largest in industry)
- Served 1.55 crore investors with diversified products across equity, debt, passive, PMS, AIF
- Expanded to 272 offices across 23 states, 4 union territories
Company Contact:
- Registered Office: One Indiabulls Centre, Tower 2, Wing B, 701, 7th Floor, Senapati Bapat Marg, Elphinstone Road, Mumbai – 400013, Maharashtra
- Phone: +91-22-6807 3200
- Email: [email protected]
- Website: www.icicipruamc.com
Workforce:
- 3,541 Full-Time Employees (as of September 30, 2025)
- Experienced fund managers, research analysts, risk management, operations, distribution, technology, compliance teams
COMPANY OVERVIEW
Establishment & Background:
- Founded: 1993 (32 years of operations)
- Industry: Asset Management – Mutual Funds, Portfolio Management Services (PMS), Alternative Investment Funds (AIF), Offshore Advisory
- Headquarters: Mumbai, Maharashtra
- Positioning: India’s largest AMC by active mutual fund QAAUM; second largest overall (13.2% market share including passive)
Business Model:
Four Core Business Lines:
1. Mutual Fund Business (Primary Revenue Driver – 92.7% of H1 FY26 revenue)
- 143 Mutual Fund Schemes (largest in India) as of September 30, 2025:
- 44 Equity and Equity-Oriented Schemes
- 20 Debt Schemes
- 61 Passive Schemes (index funds, ETFs)
- 15 Domestic Fund-of-Funds
- 1 Liquid Scheme, 1 Overnight Scheme, 1 Arbitrage Scheme
- Top 3 Schemes by QAAUM:
- ICICI Prudential Balanced Advantage Fund: ₹65,800 crore
- ICICI Prudential Multi-Asset Fund: ₹64,580 crore
- ICICI Prudential Value Fund: ₹54,380 crore
- Total MF QAAUM: ₹10,147.6 billion (₹10.15 lakh crore) as of September 30, 2025
- Market Share: 13.3% by active MF QAAUM (largest), 13.2% overall (second largest including passive)
- Equity & Equity-Oriented QAAUM: ₹4,87,650 crore (FY25), 13.6% market share (largest)
2. Portfolio Management Services (PMS)
- Discretionary and non-discretionary portfolio management
- Customized investment solutions for HNI and institutional clients
- Minimum investment thresholds per SEBI PMS regulations
3. Alternative Investment Funds (AIF)
- Category II and Category III SEBI-registered AIFs
- Long-only equity, long-short equity, debt, real estate, structured credit strategies
- Total Alternates QAAUM: ₹729.3 billion (PMS + AIF combined)
4. Offshore Advisory Services
- Advisory to Eastspring Investments (Prudential Plc’s Asian asset management arm)
- Select equity and debt strategies for offshore clients
- Advisory fees from international mandates
Distribution Network:
- 272 Offices across 23 states and 4 union territories
- 110,719 Mutual Fund Distributors (MFDs):
- Institutional and individual MFDs
- 213 National Distributors
- 67 Banks (leveraging ICICI Bank’s 7,246 branches nationwide)
- Digital Platforms: i-Invest app, modernized website, distributor portals integrated with fintech
Revenue Model:
- Management Fees: As percentage of AUM from mutual funds, PMS, AIF (92.7% of H1 FY26 revenue, 94% of FY25)
- Advisory Fees: From offshore clients (Eastspring Investments)
- Transaction/Exit Loads: Minimal post-SEBI regulations phasing out loads
- Performance Fees: From select PMS and AIF schemes
Investment Philosophy:
- Risk-First Approach: Manage risk before targeting returns
- Long-Term Focus: Wealth creation over market cycles vs short-term trading
- Active Management: Research-driven stock selection, sector allocation, market timing
Value Proposition:
- Scale & Trust: ICICI Bank + Prudential Plc backing – 32-year legacy brand
- Largest Scheme Portfolio: 143 schemes offering choice across risk-return profiles
- Individual Investor Focus: Highest individual investor MAAUM (₹6.61 lakh cr, 13.7% share) – retail-first approach
- Diversified Distribution: Multi-channel (MFDs, banks, direct, digital) reducing dependency
- Strong Performance: Equity QAAUM grew 40% CAGR (FY23-25) outpacing industry (36.2%)
Market Position:
- India’s Largest AMC by active mutual fund QAAUM (₹10.15 lakh cr, 13.3% market share as of Sep 2025)
- Second Largest Overall (13.2% including passive) after HDFC AMC
- Largest in Equity: 13.6% market share in equity & equity-oriented schemes
- Largest Individual Investor Franchise: ₹6.61 lakh cr Individual MAAUM (13.7% share)
- 143 Schemes: Most schemes managed by any AMC in India
- 1.55 Crore Investors: Among highest investor base in industry
- 32-Year Legacy: One of India’s oldest and most trusted AMCs
Operations:
Pan-India Presence:
- 272 offices across 23 states, 4 UTs
- Nationwide distribution via 110,719 MFDs, 213 national distributors, 67 banks
- ICICI Bank’s 7,246 branches providing captive distribution access
Technology Infrastructure:
- Cloud-based systems for scalability
- i-Invest mobile app for investors
- Enhanced distributor portals integrated with fintech platforms
- Real-time NAV updates, online transactions, digital onboarding
Financial Performance Highlights:
- FY25: ₹4,979.67 cr total income (+32% YoY from ₹3,761.21 cr), ₹2,650.66 cr PAT (+29% YoY from ₹2,049.73 cr)
- FY24: ₹3,761.21 cr revenue, ₹2,049.73 cr PAT
- FY23: ₹2,834.13 cr revenue (inferred), ₹1,587 cr PAT (inferred)
- H1 FY26 (6 months to Sep 30, 2025): ₹2,949.61 cr revenue, ₹1,617.74 cr PAT
- PAT Margin: 53.2% (FY25) – extremely high profitability for asset-light business
- Revenue CAGR (FY23-FY25): ~32% demonstrating strong growth
- ROE: Industry-leading returns on equity
Company Strengths
1. India’s Largest AMC by Active MF QAAUM – ₹10.15 Lakh Cr, 13.3% Market Share:
- Largest asset management company in India by active mutual fund quarterly average assets under management (QAAUM)
- ₹10,147.6 billion (₹10.15 lakh crore) active MF QAAUM as of September 30, 2025
- 13.3% market share in active MF segment (largest), 13.2% overall including passive (second largest)
- Equity Leadership: 13.6% market share in equity & equity-oriented schemes (largest in industry)
- Individual Investor Dominance: Highest individual investor MAAUM at ₹6.61 lakh cr (13.7% market share)
- Scale advantages: Negotiating power with service providers, technology investments, brand visibility, talent attraction
2. Exceptional Financial Performance – 32% Revenue, 29% PAT Growth (FY24-25):
- Total income surged from ₹3,761.21 cr (FY24) to ₹4,979.67 cr (FY25) – 32.4% YoY growth
- Profit After Tax grew from ₹2,049.73 cr (FY24) to ₹2,650.66 cr (FY25) – 29.3% YoY growth
- PAT margin of 53.2% (FY25) – industry-leading profitability for asset-light AMC business
- H1 FY26: ₹2,949.61 cr revenue, ₹1,617.74 cr PAT (54.8% PAT margin) – sustained high margins
- Management fee revenue (92.7% of H1 FY26) provides high-margin, recurring income
- ROE among highest in AMC industry – exceptional capital efficiency
- Consistent double-digit revenue growth demonstrates market share gains and AUM expansion
3. Largest Scheme Portfolio – 143 Schemes Across Equity, Debt, Passive, FoFs:
- 143 mutual fund schemes – largest portfolio managed by any AMC in India
- Diversification: 44 equity, 20 debt, 61 passive, 15 FoFs, 1 liquid, 1 overnight, 1 arbitrage
- Risk-Return Spectrum: Schemes catering to conservative (debt, liquid) to aggressive (equity, thematic) investors
- Product Innovation: First-mover in categories like Balanced Advantage, Multi-Asset, Factor-based funds
- Passive Expansion: 61 passive schemes (index funds, ETFs) capturing low-cost investor segment
- Cross-Selling: Single distributor/investor can access entire product suite – wallet share expansion
- Lower product concentration: Top 5 equity schemes = 54% of equity QAAUM vs peers’ 58.7% – diversified AUM
4. Strong ICICI Bank + Prudential Plc Parentage – Brand Trust & Distribution:
- ICICI Bank (51% promoter): India’s leading private bank with 7,246 branches, 13 crore+ customers
- Captive distribution access through bank branches, wealth management, priority banking
- Cross-sell to ICICI Bank’s affluent customer base
- Brand halo effect – ICICI brand trust extends to AMC
- Prudential Plc (39% post-IPO): Global insurance and asset management leader with $800+ billion AUM
- International best practices, risk management, product innovation expertise
- Offshore advisory synergies via Eastspring Investments
- 32-year legacy JV providing stability, governance, long-term commitment vs promoter changes at peers
5. Individual Investor Focus – 61.1% of Total MAAUM, High-Yield Revenue Base:
- Highest Individual Investor MAAUM: ₹6.61 lakh crore (13.7% market share) – largest in India
- Individual Investors = 61.1% of total MAAUM and 85.7% of equity schemes MAAUM
- High Fee Yield: Individual investors pay higher fees vs institutional; retail-heavy mix supports margins
- SIP Leadership: Strong systematic investment plan (SIP) book providing predictable inflows
- Stickiness: Retail investors have longer holding periods vs institutional hot money
- Growth Driver: India’s financialization of savings – rising retail participation in equities via MFs
6. Diversified Multi-Channel Distribution – 110,719 MFDs, 67 Banks, Digital:
- 110,719 Mutual Fund Distributors (MFDs): Extensive reach across India
- 213 National Distributors: Large distribution houses providing scale
- 67 Banks: ICICI Bank (7,246 branches) + 66 other banks as distribution partners
- 272 Offices: Direct presence in 23 states, 4 UTs for investor servicing
- Digital Platforms: i-Invest app, modernized website, fintech integrations
- Balanced Channel Mix: Equity AUM contributions – MFDs 37.7%, Direct 27.1%, National Distributors 15.8%, ICICI Bank 8.3%, Other Banks 11.1%
- Risk mitigation: No single channel dependency; MFD, bank, direct, digital diversification
7. Industry Tailwinds – India MF AUM Growth, Financialization of Savings:
- India MF Industry QAAUM: ₹54.1 trillion (Mar 2024) → ₹67.4 trillion (Mar 2025) → ₹77.1 trillion (Sep 2025) – 18.4% CAGR (FY19-FY25)
- MF AUM as % of Bank Deposits: 19.7% (Mar 2020) → 30% (Mar 2025) – rising allocation to mutual funds
- Retail Participation: Shift from traditional debt (FDs, bonds) to equity funds – demographic dividend, wealth creation
- Equity Cult: Rising household participation in equities via SIPs – systematic investing trend
- Regulatory Support: SEBI initiatives (simplified KYC, digital onboarding, investor education) driving adoption
- Market Leader Gains: As industry grows, top 3-5 AMCs (including ICICI Pru) capture disproportionate share due to brand, distribution
Key Risks & Challenges
1. 100% OFS – Zero Fresh Capital to Company, Pure Promoter Exit:
- Entire ₹10,602.65 crore IPO is Offer for Sale by Prudential Corporation Holdings
- Company receives ZERO proceeds – all funds go to exiting shareholder (Prudential)
- No growth capital for technology, distribution expansion, product development, acquisitions
- Promoter Exit Signal: Prudential reducing stake from 49% to 39.09% after 32 years – raises questions on valuation peak concerns
- ICICI Bank Not Selling: 51% promoter not participating in OFS – mixed signal (confidence vs Prudential exit)
- Future Funding: Company will need to generate growth capital organically or via debt; no IPO war chest for strategic initiatives
2. AUM & Revenue Highly Sensitive to Market Volatility – Equity Market Dependent:
- 92.7% Revenue from Management Fees tied to AUM levels (H1 FY26)
- Equity Market Volatility: Stock market corrections reduce equity AUM and fee income
- AUM Mark-to-Market: 50-60% of AUM in equity/equity-oriented schemes – market declines directly compress AUM and revenues
- Redemption Risk: Bear markets trigger investor redemptions (panic selling) – outflows reduce AUM faster
- SIP Discontinuation: Market volatility causes retail investors to stop SIPs – predictable inflows dry up
- Historical Pattern: FY20 COVID crash, FY22 Fed rate hike sell-off materially impacted AMC revenues
- Margin Compression: Fixed operating costs (salaries, offices) continue during revenue downturns – profitability volatility
3. Intense Competition from 41 AMCs – Market Share Erosion Risk:
Top Competitors (Public & Private AMCs):
- HDFC Asset Management Company: India’s largest overall AMC (including passive), strong brand, HDFC Group distribution
- SBI Mutual Fund: Government-backed, SBI Bank’s 20,000+ branches, trust factor
- Nippon Life India Asset Management: Strong equity franchise, diversified products
- UTI Asset Management Company: Oldest AMC, government legacy, institutional strength
- Aditya Birla Sun Life AMC: Aditya Birla Group, diversified AUM
- Kotak Mahindra AMC, Axis AMC, Mirae Asset, Motilal Oswal: Aggressive growth players
Competitive Pressures:
- 41 AMCs competing for same investor pool – fragmented market
- Passive product boom: Index funds, ETFs charging 0.05-0.1% fees vs active funds 1-2% – fee erosion risk
- Fintech disruption: Zerodha Coin, Groww, Paytm Money offering commission-free direct plans – disintermediation
- Performance pressure: If schemes underperform, investors switch to better-performing AMCs
- Distribution wars: MFDs, banks demanding higher commissions – margin pressure
- New entrants: International AMCs (Fidelity, Vanguard potential entries) with global scale, low-cost products
4. Regulatory Risks – SEBI Rules, TER Cuts, Disclosure Mandates:
- Total Expense Ratio (TER) Caps: SEBI mandates maximum fees AMCs can charge; periodic reviews can reduce allowable TER – direct revenue impact
- Commission Regulations: SEBI restrictions on distributor commissions (direct plan push) reduce distribution incentives
- Categorization & Rationalization: SEBI forced AMCs to rationalize schemes in 2018 – future mandates could disrupt product portfolios
- Performance Disclosure: Enhanced disclosure requirements (scheme-wise returns, expense ratios, portfolio holdings) increase transparency but also comparison pressures
- Liquidity Rules: SEBI stress tests, liquidity buffers for debt funds – operational complexity, potential restrictions
- Taxation Changes: Government changes in LTCG/STCG tax rates, dividend taxation impact investor sentiment and AUM flows
5. High Dependence on Third-Party Distributors – 110,719 MFDs, Agency Risk:
- 72.9% of Equity AUM from external channels (MFDs 37.7%, National Distributors 15.8%, Banks ex-ICICI Bank 11.1%, ICICI Bank 8.3%)
- MFD Attrition: If key distributors switch to competing AMCs or exit business, client losses
- Commission Pressure: MFDs demanding higher payouts – margin compression or lose distribution access
- Direct Plan Shift: Investors moving from regular (distributor) to direct plans (zero commission) – revenue erosion
- Digital Disintermediation: Fintech platforms (Zerodha Coin, Groww, ET Money) reducing MFD relevance – disintermediation risk
- Distributor Quality: Mis-selling, unsuitable product recommendations by MFDs damage AMC reputation
- Contract Termination Risk: Investment management, PMS, AIF, advisory agreements can be terminated by counterparties – future revenue uncertainty
6. Cybersecurity & Technology Risks – Digital Platform Dependence:
- Increasing Digital Transactions: i-Invest app, online platforms handle crores of transactions daily
- Cybersecurity Threats: Hacking, phishing, ransomware attacks on AMC systems – investor data/money at risk
- Data Breaches: Personal and financial information of 1.55 crore investors – regulatory penalties, reputational damage if breached
- System Downtime: Technology failures during market hours – investors unable to transact, redemption delays
- Third-Party Risks: RTA (Registrar & Transfer Agent), payment gateways, custodians – vendor cybersecurity weaknesses create exposure
- Regulatory Compliance: SEBI cybersecurity norms, data protection laws – non-compliance penalties
- Investment: Continuous capex on IT security, cloud infrastructure, disaster recovery – cost burden
7. Intra-Group Competition & Conflicts – ICICI Group Entity Overlaps:
- ICICI Group Entities: ICICI Securities (broking, wealth management), ICICI Venture (PE/VC), Rajasthan Asset Management, Eastspring entities
- Product Overlap: If ICICI Securities launches competing wealth products, ICICI Venture enters public market funds, conflicts arise
- Shared Directors: Directors serving on boards of ICICI Bank, ICICI Prudential AMC, other group entities – conflict of interest risks
- Business Opportunity Loss: Group decisions may favor other entities over AMC – investment opportunities, talent, capital allocation
- Brand Confusion: Multiple “ICICI” branded financial entities – investor confusion on product differentiation
- Regulatory Scrutiny: Related party transactions, inter-group dealings require SEBI, RBI oversight – compliance complexity
Disclaimer
This information is based on publicly available sources including SEBI RHP filings, company disclosures, news reports, and industry research. Investors should conduct their own research and consult with financial advisors before making investment decisions.
Past performance is not indicative of future results. The company reported strong financial performance (FY25: 32% revenue growth to ₹4,979.67 crore, 29% PAT growth to ₹2,650.66 crore, 53.2% PAT margin; H1 FY26: ₹2,949.61 crore revenue, ₹1,617.74 crore PAT), is India’s largest AMC by active mutual fund QAAUM (₹10.15 lakh crore, 13.3% market share as of September 2025) with 143 schemes and 1.55 crore investors, but faces significant risks including 100% OFS structure (zero fresh capital to company, entire ₹10,602.65 crore to exiting promoter Prudential Corporation Holdings), AUM and revenue highly sensitive to equity market volatility and redemptions, intense competition from 41 AMCs including HDFC, SBI, Nippon, UTI, Aditya Birla with passive product boom and fintech disruption, regulatory risks (SEBI TER cuts, commission regulations, disclosure mandates), high dependence on third-party distributors (72.9% of equity AUM from MFDs, national distributors, banks with contract termination risk), cybersecurity and technology risks from increasing digital platform reliance, and intra-group competition/conflicts with ICICI Group entities. Promoter Prudential reducing stake from 49% to 39.09% after 32 years raises valuation peak concerns; ICICI Bank retaining 51% (not selling) sends mixed signal. Strong ICICI Bank + Prudential Plc parentage provides brand trust and distribution access. Individual investor focus (61.1% of MAAUM) and equity leadership (13.6% market share) are key strengths. Industry tailwinds include India MF AUM growth (18.4% CAGR FY19-25) and financialization of savings. Mainboard IPO with 14 lead managers and listing on BSE/NSE. Investors must evaluate valuation premium vs peers, OFS structure implications, market volatility impact, and competitive positioning before applying.
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