ICICI Prudential AMC files IPO papers, Prudential Corp to sell 10% stake

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ICICI Prudential Asset Management Company (AMC) has filed a draft red herring prospectus (DRHP) with the markets regulator for an initial public offering estimated at ₹10,000 crore, one of the largest in the financial services sector. 

The IPO will be entirely an offer for sale, with UK-based Prudential Corporation Holdings Ltd (PCHL) planning to divest a 10 per cent stake. Prudential currently holds 49 per cent in the joint venture, while the remaining 51 per cent is owned by ICICI Bank. 

The offering, expected later this year, will mark the fifth IPO from the ICICI group and also the fifth by an asset management company in India. Previous ICICI group listings include ICICI Bank, ICICI Prudential Life Insurance, ICICI Lombard General Insurance, and ICICI Securities, which is now delisted. 

Among ICICI Prudential AMC peers, HDFC AMC, Nippon Life India Asset Management, UTI AMC, and Aditya Birla Sun Life AMC are already publicly traded. 

People familiar with the matter said the offering could value ICICI Prudential AMC at around ₹1 trillion.  ALSO READ | Crizac IPO listing forecast: GMP hints at double-digit gains for investors 

The offloading by PCHL could yield a windfall for the UK-based company, as its acquisition cost for the 10 per cent stake was just ₹10 crore. AMCs, which operate on an asset-light model, tend to deliver high returns on equity. ICICI Prudential AMC posted an ROE of 83 per cent in FY25, well above most listed peers. 

The asset manager has enlisted a record 18 investment banks for the IPO, including Citibank, ICICI Securities, Morgan Stanley, and Goldman Sachs. 

The filing comes amid robust growth in India’s mutual fund industry, driven by a shift toward financial assets in household savings. Strong equity mutual fund performance since the Covid pandemic and the rising popularity of systematic investment plans (SIPs) have fuelled investment flows. SIP inflows rose from ₹1 trillion in FY22 to ₹2.9 trillion in FY25. 

With continued inflows and a buoyant equity market, total assets under management (AUM) for mutual funds have more than doubled over four years to nearly ₹75 trillion. 

For FY25, ICICI Prudential AMC reported a net profit of ₹2,650 crore on revenue of ₹4,683 crore. AUM rose to ₹9.1 trillion from ₹6.5 trillion the previous year. 

The company is also expected to benefit from new offerings such as specialised investment funds (SIFs). ICICI Prudential AMC is among nearly a dozen firms planning to enter this new mutual fund segment, which targets high-income investors with riskier strategies and potential tax advantages over portfolio management services and alternative investment funds.