ICICI Prudential IPO Listing: GMP indicates asset manager to debut with strong gains

Shares of ICICI Prudential Asset Management Company are set to make their much-awaited stock market debut on Friday, December 19.

Ahead of the listing, unlisted market data suggests a strong debut, with the latest grey market premium for the ICICI Prudential AMC IPO pegged at around ₹370.

Based on the upper end of the price band at ₹2,165, this implies an estimated listing price of about ₹2,535, translating into a potential listing gain of nearly 17%.

However, GMP trends are speculative in nature and actual listing performance may differ.

Adding to the positive sentiment, ICICI Prudential AMC has received its first initiation of coverage ahead of listing

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PL Capital has initiated coverage on the stock with a ‘Buy’ rating and a target price of ₹3,000, indicating an upside of about 39% from the IPO price.

The ₹10,603-crore IPO closed on December 16 after being subscribed nearly 39 times.

Qualified institutional buyers led demand, subscribing to their portion about 124 times, while non-institutional investors subscribed around 22 times. Retail investors subscribed 2.53 times, and the shareholder quota was taken up close to 10 times.

The issue was priced in the range of ₹2,061 to ₹2,165 per share and comprised an offer for sale of 4.90 crore equity shares.

ICICI Bank currently holds a 51% stake in ICICI Prudential AMC, while joint venture partner Prudential owns the remaining 49%.

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 are the book-running lead managers for the issue.

The listing will make ICICI Prudential AMC the fifth ICICI Group entity to be traded on Indian stock exchanges, after ICICI Bank, ICICI Prudential Life, ICICI Lombard, and ICICI Securities.