Marquee investors have put nearly Rs. 4,815 cr in the pre-IPO round

ICICI Prudential Asset Management Company Ltd, 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, has completed its pre-IPO (Initial Public Offering) placement of nearly ₹4,815 crs.

The Company, in consultation with the Book Running Lead Managers to the IPO has undertaken a private placement of 22, 240, 841 equity shares for cash considerations, at an issue price of ₹ 2,165 per equity share which saw participation from leading names such as Lunate Capital (Abu Dhabi based sovereign fund), Estate of late Mr. Rakesh Jhunjhunwala, The Regents of the University of California – IIFL Asset Management, Sarv Investments, 3P India Equity Fund (managed by Prashant Jain), PI Opportunities Fund – II, 360One Funds, DSP India Fund, Whiteoak Capital India Opportunities Fund, HCL Capital, Manish Chokani and Madhusudan Kela to name a few.

Insurance companies like SBI Life Insurance Company, HDFC Life Insurance Company, Kotak Life Insurance Company, Aditya Birla Sun Life Insurance Company, Bajaj Life Insurance Company, TATA AIG General Insurance Company, and Go Digit General Insurance too participated in the pre-placement. Kedaara Capital Public Markets Fund, TIMF Holdings, Malabar India Fund and Clarus Capital I are some of the other investors. Also, ICICI Bank invested Rs 2,140 cr for an additional 2% stake in the company.

The IPO is an offer-for-sale of up to 48,972,994 shares by the promoter Prudential Corporation Holdings Limited.

As of September 30, 2025, its total mutual fund QAAUM was ₹10,147.6 billion and was the largest asset management company in terms of equity and equity- oriented QAAUM with a market share of 13.6%. It’s equity- oriented hybrid schemes with a market share of 25.8% was the largest in India, as of September 30, 2025 and as of March 31, 2025, 2024 and 2023 (Source – CRISIL Report).

As of September 30, 2025, the company’s mutual fund monthly average asset under management (MAAUM) attributable to individual investors (comprising retail investors and high-net-worth individuals) was ₹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 has 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).

When it comes to profitability, ICICI Prudential AMC maintains a significant lead over its peers. The appropriate measure to gauge profitability in the AMC industry is the OPBT which includes only core profitability derived from Investment Management Fees and does not includes Investment income earned on the deployment of the excess cash in the company. The AMC accounted for roughly 20% of the industry’s operating profit in FY25, making it the largest profit pool among Indian asset managers. For FY 2025 company reported OPBT of ₹3236 crs, 19% higher than HDFC. This gap widened to 26% in H1FY2026 with company reporting OPBT of ₹1933.

With the proposed valuation of ₹1,07,000 crs, P/E will be 40.4x on FY25 earnings and 33.1x on annualised H1FY26 numbers, putting it at a discount of more than 10% to HDFC AMC (45.5x) for FY2025 and a discount of about 16% based on annualised H1FY26 PAT.

When valuation is considered basis the OPBT after reducing the cash in the balance sheet, then with the proposed valuation of ₹1,07,000 crs, P/E on OPBT will be 32.1x on FY25 earnings and 26.9x on annualised H1FY26 numbers, putting it at a discount of 16% to HDFC AMC for FY2025 and a discount of ~26% based on annualised H1FY26.