Kolkata: ICICI Pru AMC shares recorded a bumper market debut on Friday with the listing price on NSE at Rs 2,600 per share. The shares listed at Rs 2606.20
apiece. While the premium was 20.38% at BSE, it was 20.09% premium on NSE.
ICICI Pru AMC is one of the strongest asset management companies in the country in the expanding sector of mutual funds. Accordingly there was a high degree of interest in the issue from the pre-IPO round itself, when big investors such as the family of the late Rakesh Jhunjhunwala picked up shares. The frenzy intensified in the anchor investment round when prominent investors from India and abroad queued up to invest.
Eventually, when the bidding window opened, investors submitted bids that were nearly 40 times the Rs 10,602.65 crore the issue set out to mop up from the market. The GMP of the IPO reflected all that frenzy over the past few days.
The charge of ICICI Pru IPO GMP
The GMP began on a tepid note. According to investorgain data, on Dec 11, it stood at Rs 150 only signaled a listing gain of 6.93%. But the excitement began only building up from that modest level. From that day, it kept rising steadily. In the morning of of Dec 19, the GMP reached Rs 520, indicating a listing gain of 24.02%. The listing price indicated at this level — Rs 2,685 against an IPO price of 2,165.
Dec 19: Rs 520 (listing gain 24.02%)
Dec 18: Rs 520 (24.02%)
Dec 17: Rs 370 (17.09%)
Dec 16: Rs 344 (15.89%)
Dec 15: Rs 302 (13.95%)
Dec 14: Rs 292 (13.49%)
Dec 13: Rs 280 (12.93%)
Dec 12: Rs 255 (11.78%)
Dec 11: Rs 150 (6.93%)
Therefore, the GMP has risen by almost 3.5 times in eight days. The GMP kept rising through the bid process, allotment and even after allotment. However, one should keep in mind that GMP is an unofficial indicator that is volatile and cannot guarantee any listing gain (or loss).
Business strength of ICICI Pru AMC
ICICI Pru AMC is at the very top of the expanding world of mutual funds in India. It boasts of the highest number of mutual fund schemes among all AMCs, particularly in active and equity-oriented schemes. Reports indicate that it was the most profitable AMC in FY25 and contributed an incredible 20% of the operating profit of the entire MF industry. It was pointed out that the this was not only due to robust AUM growth but also to a superior revenue yield of 52 basis points.
ICICI Pru AMC boasts of spectacular capital efficiency. It has a ROE (return on equity) of 83%, which is nearly 2.6 times higher than that of peer firms such as HDFC AMC and Nippon Life AMC. The ROE of these two AMCs are at 32%. The IPO commands a P/E multiple of 40x that is higher than the industry average of 32x.
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