ICICI Prudential IPO: Strong Grey Market Premium Suggests Positive Listing

ICICI Prudential Asset Management Company (AMC) is scheduled to begin trading on the stock market this Friday, December 19th, and early indications suggest a promising debut.

Ahead of the listing, the grey market premium (GMP) for the ICICI Prudential AMC IPO is approximately ₹370. Considering the upper end of the IPO price band at ₹2,165, this implies a potential listing price of around ₹2,535, which could translate to a gain of roughly 17% upon listing. It is important to note that GMP trends are speculative and the actual listing performance could vary.

Adding to the positive outlook, PL Capital has initiated coverage of ICICI Prudential AMC with a 'Buy' rating and a target price of ₹3,000. This suggests a potential upside of about 39% from the IPO price.

The ₹10,603 crore IPO, which closed on December 16th, was heavily oversubscribed, with nearly 39 times more subscriptions than shares offered. Qualified institutional buyers (QIBs) showed particularly strong interest, subscribing to their portion approximately 124 times. Non-institutional investors subscribed around 22 times, while retail investors subscribed 2.53 times. The shareholder quota was subscribed almost 10 times.

The IPO was priced between ₹2,061 and ₹2,165 per share and consisted of an offer for sale of 4.90 crore equity shares.

Currently, ICICI Bank holds a 51% stake in ICICI Prudential AMC, with Prudential owning the remaining 49%.

The book-running lead managers for the issue include Citigroup Global Markets India, Axis Capital, BofA Securities India, Morgan Stanley India Company, IIFL Capital Services, CLSA India, Kotak Mahindra Capital Company, Nomura Financial Advisory and Securities, and SBI Capital Markets.

ICICI Prudential AMC's listing will mark it as the fifth entity from the ICICI Group to be traded on the Indian stock exchanges, joining ICICI Bank, ICICI Prudential Life, ICICI Lombard, and ICICI Securities.