ICICI Prudential AMC becomes most valued stock in capital market sector

Stock closes 19% higher post debut; market cap overtakes HDFC AMC

Shares of ICICI Prudential Asset Management Company (AMC) surged as much as 23 per cent on their trading debut on Friday, as investors bet on the company as a key beneficiary of the ongoing shift in household savings from traditional assets to equities. The stock touched an intraday high of ₹2,663, before settling at ₹2,576, up ₹411, or 19 per cent, over its issue price of ₹2,165 per share.

 

At close, ICICI Prudential AMC commanded a market capitalisation of ₹1.27 trillion, making it the most valued stock in India’s capital market ecosystem and overtaking peer HDFC AMC, which is currently valued at ₹1.14 trillion. 

The strong listing followed robust demand for the asset manager’s ₹10,602-crore initial public offering, which was subscribed nearly 40 times and garnered bids worth about ₹3 trillion. The issue was entirely an offer for sale by UK-based Prudential Plc — ICICI Prudential AMC’s joint venture partner.

 

The company had priced its shares at around 40 times its financial year 2025 (FY25) earnings, broadly in line with listed peers such as HDFC AMC and Nippon Life AMC. Analysts, however, said ICICI Prudential AMC merited a valuation premium, given its leadership in active equity assets under management (AUM), superior revenue mix, margins, and return on equity (ROE).

 

“The attractiveness of the AMC industry in general, driven by financialisation as a long-term macro theme, the strong operating performance of ICICI Prudential AMC, and the pricing of the deal at an attractive discount to listed peers make it one of the most compelling IPOs of the year,” wrote Himanshu Dugar of Stylus Holdings in an IPO note published on Smartkarma. “We expect a listing pop of 15-20 per cent as the stock catches up to relative valuations, with further upside as free float increases.”

 

Ahead of the IPO, ICICI Bank held a 51 per cent stake in the company, while UK-based Prudential owned the remaining 49 per cent. Post listing, Prudential’s stake has declined to 35 per cent, taking the combined promoter holding to about 86 per cent. Any further stake dilution to meet minimum public shareholding requirements will be undertaken solely by Prudential.

 

Asset management companies typically operate asset-light, high-margin businesses, translating into strong profitability metrics.

 

ICICI Prudential AMC reported an exceptional ROE of 83 per cent in financial year 2025 (FY25), well ahead of most listed peers. During the year, it posted a net profit of around ₹2,650 crore on revenue of about ₹4,683 crore, while AUM surged to approximately ₹9.1 trillion from ₹6.5 trillion a year earlier.

 

The AMC also has the highest number of schemes in the industry, with presence across asset classes and categories. Having secured a specialised investment fund (SIF) licence, the company plans to expand into the emerging asset management space.

 

“As of September 2025, our active mutual fund market share stood at 13.3 per cent, and we are the largest AMC in equity-oriented and hybrid schemes. With Sebi introducing a new framework for SIFs, we will also be launching products under that regime,” Nimesh Shah, managing director and chief executive officer of ICICI Prudential AMC, told Business Standard during the IPO.

 

Market participants also pointed to the Securities and Exchange Board of India’s announcement on changes in the mutual fund expense ratio structure as adding to the positive sentiment around the stock.