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Review By Dilip Davda on December 10, 2025
- The company is the largest AMC in India in terms of active MF-QAAUM basis.
• It enjoys parented of ICICI group with Prudential as a joint partner.
• The company posted steady growth in its top and bottom lines for the reported periods.
• It’s a dividend paying company, diluting just around 10% equity.
• Based on its recent financial data, the issue appears fully priced.
• Investors may park funds for medium to long term.
ABOUT COMPANY:
ICICI Prudential Asset Management Co. Ltd. (IPAMCL) is the largest asset management company in India in terms of active mutual fund quarterly average assets under management (“QAAUM”) with a market share of 13.3% as of September 30, 2025 (Source: CRISIL Report). As of September 30, 2025, its total mutual fund QAAUM was Rs. 10,147.6 billion. As of September 30, 2025, it is the largest asset management company in terms of Equity and Equity Oriented QAAUM with market share of 13.6% (Source: CRISIL Report). Its Equity Oriented Hybrid Schemes also had the largest market share in India, as of September 30, 2025 and as of March 31, 2025, 2024 and 2023 (Source: CRISIL Report). As of September 30, 2025, IPAMCL is the largest asset management company in terms of Equity Oriented Hybrid QAAUM with market share of 25.8% (Source: CRISIL Report).
As of September 30, 2025, its mutual fund monthly average asset under management (“MAAUM”) attributable to individual investors (comprising retail investors and high-net-worth individuals) (“Individual Investors”) was Rs. 6,610.3 billion. This represented the highest Individual Investor MAAUM in the Indian mutual fund industry with a market share of 13.7% (Source: CRISIL Report). In addition to its mutual fund business, the company also have a growing alternates business comprising portfolio management services (“PMS”), management of alternative investment funds (“AIFs”) and advisory services to offshore clients (PMS, AIF and advisory, collectively “Alternates”). It is the most profitable asset management company in India, in terms of operating profit before tax, with a market share of 20.0% for the Financial Year 2025 (Source: CRISIL Report).
It is one of the oldest asset management companies in India with history of over 30 years in the asset management industry. Its investment approach has always been to manage risk first and aim for long term returns for customers whilst ensuring that its brand continues to remain trusted. IPAMCL ranked as the second largest asset management company in India, in terms of QAAUM, with a market share of 13.2% as of September 30, 2025 (Source: CRISIL Report). It serves a customer base of 15.5 million customers, as of September 30, 2025.
The company delivers a range of investment products across multiple financial asset classes, to address a diverse spectrum of clients’ objectives and risk appetites, from income accrual to long-term wealth creation. It manages the largest number of schemes in the mutual fund industry in India as of September 30, 2025, with 143 schemes comprising 44 Equity and Equity Oriented Schemes, 20 debt schemes, 61 passive schemes, 15 domestic fund-of-funds schemes, one liquid scheme, one overnight scheme and one arbitrage scheme (Source: CRISIL Report). Generally, Equity and Equity Oriented Schemes have a higher fee structure as compared to non-equity oriented schemes (Source: CRISIL Report). This has resulted in its AUM mix contributing to efforts towards enhancing operating profits. As of September 30, 2025, its Equity and Equity Oriented Schemes account for 55.8% of total mutual fund QAAUM. The company is constantly focused on awareness and education of its products across both distributors and investors, which continues to help it build trust with them.
As of September 30, 2025, it has established a pan-India distribution network comprising 272 offices across 23 states and four union territories. Its distribution model is targeted to be balanced and multi-channeled, encompassing both physical and digital platforms, and is supported by its salesforce. As of September 30, 2025, its mutual fund distributors (“MFDs”), consisted of 110,719 institutional and individual MFDs, 213 national distributors and 67 banks (including ICICI Bank Limited). The company leverages the extensive distribution network of ICICI Bank Limited (the “ICICI Bank”), one of its Promoters and a registered mutual fund distributor, which had 7,246 branches across India as of September 30, 2025. As of September 30, 2025, MFDs, national distributors, direct sales, ICICI Bank and other banks was 37.7%, 15.8%, 27.1%, 8.3% and 11.1% respectively, of its Equity and Equity Oriented Schemes QAAUM. As of September 30, 2025, it had 3541 employees on its payroll.
The company had a 51:49 partnership between ICICI Bank and Prudential Corp. ICICI Bank is not diluting any stake, but on the contrary, it has bought 2% stake from Prudential to make it 53% on the post IPO basis while Prudential will have around 37%. IPAMCL has outperformed the industry on many counts enjoys legacy for over three decades.
ISSUE DETAILS/CAPITAL HISTORY:
The company is coming out with its maiden book building route secondary IPO of 48972994 equity shares of Rs. 1 each (worth Rs. 10602.65 cr. at the upper cap). The company has announced a price band of Rs. 2061 – Rs. 2165 per equity shares of Rs. 1 each. The issue opens for subscription on December 12, 2025, and will close on December 16, 2025. The minimum application to be made is for 6 shares and in multiples thereon, thereafter. Post allotment, shares will be listed on BSE and NSE. The issue constitutes 9.91% of the post-IPO paid-up equity capital. This being a pure Offer for Sale (OFS), no funds are going to the company. This issue is being made to provide exit to its existing stakeholders and unlock the listing benefits.
The company has reserved approx. 2448649 shares (worth Rs. 530.13 cr. at the upper cap), for the shareholders of ICICI Bank Ltd., and from the rest, it has allocated not more than 50% for QIBs, not less than 15% for HNIs and not less than 35% for Retail investors.
The team of 18 Book Running Lead Managers (BRLMs) to this issue are Citigroup Global Markets India Pvt. Ltd., Morgan Stanley India Co. Pvt. Ltd., BofA Securities India Ltd., Axis Capital Ltd., CLSA India Pvt. Ltd., IIFL Capital Services Ltd., Kotak Mahindra Capital Co. Ltd., Nomura Financial Advisory & Securities (India) Pvt. Ltd., SBI Capital Markets Ltd., ICICI Securities Ltd., Goldman Sachs (India) Securities Pvt. Ltd., Avendus Capital Pvt. Ltd., BNP Paribas, HDFC Bank Ltd., JM Financial Ltd., Motilal Oswal Investment Advisors Ltd., Nuvama Wealth Management Ltd., and UBS Securities India Pvt. Ltd. while KFin Technologies Ltd., is the registrar to the issue.
After issuing initial equity shares at par, the company has issued further equity shares at a fixed price of Rs. 5.513 per in February 1998. It has also issued bonus shares in the ratio of 1.8 for 1 in November 2025. The average cost of acquisition of shares by the promoters/selling stakeholders Rs. 2.00, and Rs. 2.40 per share.
Post-IPO, its current paid-up equity capital of Rs. 49.43 cr. will remain same as this is a pure secondary issue. Based on the upper cap of the IPO price band, the company is looking for a market cap of Rs. 107006.97 cr.
FINANCIAL PERFORMANCE:
On the financial performance front, for the last three fiscals, the company has posted a total income/net profit, of Rs. 2838.18 cr. / Rs. 1515.78 cr. (FY23), Rs. 3761.21 cr. / Rs. 2049.73 cr. (FY24), and Rs. 4979.67 cr. / Rs. 2650.66 cr. (FY25). For H1 of FY26 ended on September 30, 2025, it earned a net profit of Rs. 1617.74 cr. on a total income of Rs. 2949.61 cr. The company has posted steady growth in its top and bottom lines for the reported periods.
For the last three fiscals, the company has posted an average EPS of Rs. 45.7 and an average RoNW of 79.40 %. The issue is priced at a P/BV of 27.39 based on its NAV of Rs. 79.03 as of September 30, 2025, as well as on the post-IPO basis.
If we attribute FY26 annualized earnings to its post-IPO fully diluted paid-up equity capital, then the asking price is at negative P/E of 33.07. Based on FY25 earnings also, the P/E stands at 40.37. Thus, the issue appears fully priced.
The company has posted OPERATING margins of 0.36% (FY23), 0.36% (FY24), 0.36% (FY25), 0.37% (H1-FY26), and RoE margins of 70.00%, 78.90%, 82.80%, 86.80%, respectively, for the referred periods. The company has outperformed the industry standards.
DIVIDEND POLICY:
The company has paid dividends of 6910% (FY23), 8370% (FY24), 11400% (FY25), and 3950% (H1-FY26). It has already adopted a dividend policy in October 2018, and amended it in June 2025, based on its financial performance and future prospects.
COMPARISON WITH LISTED PEERS:
As per the offer document, the company has shown HDFC AMC, Nippon Life India AMC, UTI AMC, and Aditya Birla Sun Life AMC, as its listed peers. They are currently trading at a P/E of 40.8, 39.2, 24.3, and 21.8 (as of December 10 2025). However, they are not truly comparable on an apple-to-apple basis.
MERCHANT BANKER’S TRACK RECORD:
The eighteen BRLMs associated with the offer have handled 163 pubic issues in the past three fiscals, out of which 41 issues closed below the offer price on the listing date.
Conclusion / Investment Strategy
IPAMCL is the largest AMC in India in terms of active MF-QAAUM basis. It enjoys parented of ICICI group with Prudential as a joint partner. The company posted steady growth in its top and bottom lines for the reported periods. It’s a dividend paying company, diluting just around 10% equity. Based on its recent financial data, the issue appears fully priced. Investors may park funds for medium to long term.
Review By Dilip Davda on December 10, 2025
Review Author
DISCLAIMER: No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. My reviews do not cover GMP market and operators game plans. Readers must consult a qualified financial advisor before making any actual investment decisions, based the on information published here. With entry barriers, SEBI wants only well-informed investors to participate in such offers. With crazy listings in the recent past, SME IPOs drew the attention of investors across the board and lead to seer madness. However, as SME issues have entry barriers and continued low preference from the broking community, any reader taking decisions based on any information published here does so entirely at their own risk. The above information is based on information available as of date coupled with market perceptions. The Author has no plans to invest in this offer.
About Dilip Davda
Dilip Davda is veteran journalist associated with stock market since 1978. He is contributing to print and electronic media on stock markets/insurance/finance since 1985.
Dilip Davda is a leading reviewer of public issues and NCDs in the primary stock market in India. The knowledge he gained over 3 decades while working in the stock market and a strong relationship with popular lead managers makes his reviews unique. His detailed fundamental and financial analysis of companies coming up with IPOs helps investors in the primary stock market. Dilip Davda has a special interest in analyzing the SME companies and writing reviews about their public issues. His reviews are regularly published online and in news papers.
(Dilip Davda -SEBI registered Research Analyst-Mumbai,
Registration no. INH000003127 (Perpetual)
Email id: dilip_davda@rediffmail.com ).
Courtesy: https://www.chittorgarh.com/
