Analysts See Long-Term Promise
SUDHIR KUMAR
ICICI Prudential Asset Management Company (AMC) made an impressive debut on the stock exchanges on Friday, delivering strong listing gains of around 19 per cent after its initial public offering (IPO) received overwhelming investor interest. Despite some intraday volatility, the stock managed to hold most of its premium by the close.
The shares settled at ₹2,586.70 on the BSE and ₹2,585.90 on the NSE, compared with the IPO issue price of ₹2,165. On debut, the stock opened at ₹2,600 on the NSE and ₹2,606.20 on the BSE, translating into gains of nearly 20–20.3 per cent over the issue price.
Market experts said the listing performance was largely in line with expectations. Prashanth Tapse, Senior VP (Research) at Mehta Equities, advised allotted investors to hold the stock from a long-term perspective, while cautioning non-allottees against chasing the stock at elevated levels on listing day due to the possibility of near-term consolidation amid cautious market sentiment.
Dr Ravi Singh, Chief Research Officer at Master Capital Services, highlighted ICICI Prudential AMC’s strong distribution network, profitability focus, and scalable business model, describing it as a potential long-term compounder. However, he noted that at current valuations, sustained AUM growth, stable market conditions, and cost discipline will be key drivers for further upside.
Echoing similar views, Shivani Nyati, Head of Wealth at Swastika Investmart, said short-term investors may consider booking profits after the sharp listing gains, while long-term investors can continue to hold, with a stop-loss near ₹2,350 to manage downside risk. She added that structural tailwinds such as rising SIP inflows, deeper mutual fund penetration in tier-2 and tier-3 cities, and increasing preference for professional fund management support long-term growth.
The ₹10,602.65-crore IPO was subscribed over 39 times, garnering bids worth nearly ₹3 lakh crore, making it the fourth most-subscribed IPO in Indian market history. Priced in the ₹2,061–₹2,165 range, the issue valued the company at about ₹1.07 lakh crore. The entire IPO was an offer-for-sale by UK-based Prudential Corporation Holdings, with no fresh capital raised by the company.
Ahead of the listing, brokerages Equirus Securities and PL Capital initiated coverage with bullish long-term outlooks, assigning target prices of ₹2,900 and ₹3,000, respectively, citing strong fundamentals, diversified revenues, and the backing of ICICI Bank’s extensive distribution network.