Prudential's Stunning Gains
Prudential Corporation Holdings, based in London, is poised for extraordinary financial gains due to the ICICI Prudential AMC IPO. Having initially invested
in the company two decades ago, purchasing shares at a mere Rs 2 each, they are now set to gain a staggering Rs 10,603 crore. This represents a remarkable return of 108,170%. Prudential is offering 4.89 crore shares for sale within the IPO, priced at Rs 2,165 per share, after earlier offloading a 4.5% stake in a pre-IPO transaction worth approximately Rs 4,900 crore. The financial services giant, held a 49% stake in India's top asset manager by September 2025. It is divesting 10% in the public offering, while recently selling another 2% to ICICI Bank. The pre-IPO round saw participation from various institutional investors, including Abu Dhabi sovereign fund Lunate, SBI Life, HDFC Life, and Kotak Life, demonstrating strong confidence in the company.
IPO's Major Players
The ICICI Prudential AMC IPO attracted a distinguished lineup of investors. The list of anchor investors includes prominent names such as JP Morgan, Goldman Sachs, Fidelity, BlackRock, and Aberdeen, alongside LIC and several mutual funds. In the pre-IPO round, a consortium of 26 significant investors collectively invested around Rs 2,675 crore, led by the estate of the late billionaire Rakesh Jhunjhunwala, contributing Rs 100 crore. Notably, star fund managers Prashant Jain's 3P India and Madhusudhan Kela's family trust also invested Rs 45 crore each. ICICI Bank, the co-promoter, increased its stake by acquiring an additional 2% for Rs 2,140 crore, raising its total holding to 53% from 51%. The overall participation underscores the IPO's appeal and the market's positive outlook for ICICI Prudential AMC's future.
Valuation and Performance
The IPO's valuation highlights its strong market positioning. At the proposed valuation of Rs 107,000 crore, the IPO is priced at 40.4x FY25 earnings and 33.1x annualized H1FY26 numbers. This presents a discount of over 10% compared to HDFC AMC's 45.5x for FY2025 and roughly 16% discount on annualized H1FY26 PAT. On an operating profit basis, after adjusting for balance sheet cash, the price-to-earnings (PE) ratio stands at 32.1x on FY25 earnings and 26.9x on annualized H1FY26 figures. This translates to a 16% discount compared to HDFC AMC's 38.2x for FY2025 and a 26% discount based on annualized H1FY26 metrics. ICICI Prudential AMC demonstrated remarkable financial performance, capturing approximately 20% of the industry's operating profit in FY25. The company is the largest profit pool among Indian asset managers, with an operating profit before tax of Rs 3,236 crore, a 32% compound annual growth rate (CAGR) over three years, and 19% higher than its listed competitor, HDFC AMC.
Market Dominance and Growth
ICICI Prudential AMC holds the leading position in the Indian asset management sector. It dominates equity and equity-oriented schemes with a 13.4% market share. Its equity-oriented quarterly average assets under management (QAAUM) surged to Rs 4.9 trillion, achieving a 40% CAGR between March 2023 and March 2025. This growth significantly outpaced the industry's growth, which was approximately 36% during the same period. ICICI Prudential AMC also leads the market with a 13.3% market share in active mutual fund QAAUM, which totaled Rs 8.8 lakh crore at the end of FY25. Additionally, the company is involved in a growing alternatives business that spans PMS, AIFs, and offshore advisory services with Rs 72,930 crore QAAUM.
