ICICI Prudential AMC Shares Could Reach ₹3,000, Says PL Capital Before Listing

Ahead of ICICI Prudential AMC's stock market launch on Friday, December 19th, domestic brokerage firm PL Capital, a part of the Prabhudas Lilladher Group, has initiated coverage on the company.

PL Capital has given a 'Buy' rating with a price target of ₹3,000 per share, anticipating a potential 40% increase from the IPO price. The brokerage's positive outlook is based on ICICI Prudential AMC's leading position in asset management, supported by solid underlying financial health.

The brokerage is optimistic about the company's future, noting its strong parentage and performance. These factors have helped ICICI Prudential AMC achieve the highest net equity flow market share (17.5%) among all asset management companies during the first eight months of FY26.

PL Capital also highlighted ICICI Prudential AMC's superior equity yields of 67 basis points, which are supported by the industry's lowest distributor payouts. Furthermore, nearly 73.7% of the company's mutual fund sales are generated through ICICI Bank, benefiting from the bank's established distribution network.

The brokerage also pointed out that non-mutual fund revenue accounts for a relatively high 9.2% of ICICI Prudential AMC's income, compared to its competitors.

PL Capital projects that ICICI Prudential AMC's equity average assets under management (AUM) will grow at a compound annual growth rate (CAGR) that exceeds the industry average by 2.5% between fiscal years 2025 and 2028. This growth is expected to translate into a core profit after tax CAGR of approximately 18.5%.

Based on the upper IPO price band of ₹2,165, the stock is valued at about 27 times its projected September 2027 core earnings per share. This represents a discount of roughly 17% to 16% compared to peers like HDFC AMC and Nippon Life India AMC, which are trading at approximately 32 times earnings.

PL Capital believes ICICI Prudential AMC could eventually command a higher valuation than HDFC AMC, driven by its robust distribution network and diversified revenue streams, while maintaining comparable profitability.

The ICICI Prudential AMC IPO, valued at ₹10,603 crore, was open for subscription from December 12th to 16th, with a price band of ₹2,061-2,165 per share.

The IPO witnessed strong demand, receiving bids worth nearly ₹3 lakh crore from 55 lakh applications, making it the fourth-largest subscription amount in the history of Indian public offerings. By comparison, Tata Capital’s IPO received about 23.6 lakh applications, HDB Financial Services around 43 lakh, and LG’s India issue drew nearly 65 lakh applications.

Unlisted market reports suggest ICICI Prudential AMC shares are trading at a premium of ₹360 per share. That said, the reality is a bit more complicated. these reports are speculative, and the actual listing price may vary from these rates.

ICICI Prudential AMC IPO shares are scheduled to be listed on both the NSE and BSE on December 19th.