ICICI Prudential AMC IPO Listing: Stock makes strong debut, lists at 20% premium over issue price

"For short-term trading options, the approximately 20 per cent premium reflects strong market demand and successful pricing relative to the sell-side and retail participation, good for quick execution for a profit opportunity. For long-term investment goals, the profile of one of India's largest AMCs, with a massive network of distribution through ICICI Bank, suggests that there will be continued structural growth, in line with the growth of mutual funds in India," Nilesh Choudhary, Founder and CEO, Aikyam Capital Group.

"For non-allotted investors, we advise against chasing the stock on listing day and suggest waiting for more reasonable entry levels post listing, as near-term volatility or price consolidation cannot be ruled out amid cautious market sentiment,” said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd

"ICICI AMC with a robust distribution network and focus on profitability place it a potential compounder over time. That said, with post-listing valuation a sustained AUM growth, stable market conditions and cost discipline will be critical factors which will define further upside. From a long-term investor’s perspective, the company offers a strong position in India’s wealth creation journey," said Dr Ravi Singh, Chief Research Officer from Master Capital Services Ltd.

Shares of ICICI Prudential AMC fell to a low of Rs 2,573 after a strong listing amid profit booking. Last seen, the stock was trading at Rs 2586.20 with a fall of 0.77 per cent

ICICI Prudential AMC shares listed at Rs 2,606.20 on the BSE and rose further to a high of Rs 2,662, a 2.14 per cent gain from the listing price. 

In the pre-opening session, ICICI Prudential AMC shares settled at Rs 2606.20 on the BSE, a premium of 20.38 per cent to the issue price of Rs 2165.

In the pre-opening session, ICICI Prudential AMC shares settled at Rs 2600 on the NSE, a premium of nearly 20 per cent to the issue price of Rs 2165.

Domestically, the anchor book also included participation from the state-owned LIC and leading mutual fund houses, such as SBI MF, Nippon India MF, Axis MF, HDFC MF, and Aditya Birla Sun Life MF, among others.

The initial public offering (IPO) is an entirely offer-for-sale (OFS) of more than 4.89 crore shares by its promoter, UK-based Prudential Corporation Holdings, meaning the company will not receive any proceeds from the offering.

ICICI Prudential AMC's unlisted shares are trading at a grey market premium (GMP) of Rs 520, i.e. a gain of 24.02 per cent from the upper price band of Rs 2,165.

The Rs 10,602.65-crore IPO received 39.17 times subscription. The initial share received bids for 1,37,14,88,316 shares against 3,50,15,691 shares on offer, according to details available with the NSE.

The initial public offering of ICICI Prudential Asset Management Company Ltd received a strong response from investors, with 39.17 times subscription on the final day of bidding on Tuesday.