ICICI Prudential AMC IPO draws nearly Rs 3 lakh crore bids, fourth largest on record

ICICI Prudential AMC's IPO has delivered one of the strongest demand signals seen in India's primary markets. The Rs 10,600 crore IPO drew bids worth close to Rs 3 lakh crore from 55 lakh applications, making it the fourth-largest subscription amount in the history of Indian IPOs.For comparison, Tata Capital’s IPO had received about 23.6 lakh applications, HDB Financial Services around 43 lakh, while LG’s India issue had drawn nearly 65 lakh applications.Overall, the ICICI Prudential AMC IPO was subscribed 39.17 times, with demand overwhelmingly led by institutional investors. The qualified institutional buyers (QIB) portion, excluding anchors, was subscribed an extraordinary 123.87 times, translating into bids of about Rs 2.49 lakh crore.Within this, long-only global funds, sovereign wealth funds and domestic mutual funds accounted for the bulk of demand, reflecting confidence in the company’s scale, profitability and business model.The non-institutional investor (NII) category was subscribed about 22 times, attracting bids worth roughly Rs 33,295 crore. Retail participation was relatively muted in comparison, with the retail portion subscribed about 2.5 times.Such a pattern is typical of large, fully priced offers, where institutional conviction tends to dominate, while retail investors are more selective.A key highlight of the issue was the breadth and quality of its anchor and pre-IPO investor base. The company had a combined list of 74 anchor investors and 26 pre-IPO investors, one of the most diverse seen in recent years.This included four sovereign wealth funds — Temasek, GIC, Abu Dhabi Investment Authority and Lunate — alongside 19 of the top 20 mutual fund houses in India. In addition, 15 insurance companies and three pension funds participated, underscoring the long-term orientation of the investor base.Global institutional participation was equally strong, with names such as Capital Group, Fidelity, Norges Bank Investment Management, FMR, the University of California endowment, JP Morgan, BlackRock, Aberdeen, Wellington, Goldman Sachs and WhiteOak featuring among the investors.The issue also saw participation from well-known market investors and their funds, including the estate of Rakesh Jhunjhunwala, Prashant Jain-led 3P Investment Managers, Manish Chokhani and Madhu Kela, as well as marquee family offices such as those of Premji, HCL, the Hero family and the Times Group.The demand reflects ICICI Prudential AMC’s position as the largest asset management company in India in terms of active mutual fund assets. As of September 30, 2025, the company managed quarterly average assets of over Rs 10.1 lakh crore.Its operations span mutual funds, portfolio management services, alternative investment funds and advisory services, supported by a nationwide distribution network of 272 offices. The company also benefits from strong parentage, being promoted by ICICI Bank and UK-based Prudential plc.Financially, ICICI Prudential AMC has demonstrated consistent growth and resilience across market cycles. In FY25, revenue rose 32% year-on-year, while profit after tax increased 29%. For the six months ended September 2025, the company reported a PAT of Rs 1,617.74 crore.Analysts often point to its capital-light and highly cash-generative business model, which allows it to deliver industry-leading return ratios. The company’s return on equity stands at over 80%, among the highest in the listed financial services space.At the IPO price, ICICI Prudential AMC is valued at around 33 times post-issue earnings. While this valuation leaves limited room for sharp re-rating, investors appear comfortable paying a premium for stability, scale and predictable cash flows. Importantly, the IPO is entirely an offer for sale, meaning there is no fresh capital infusion into the business. This has led some analysts to temper expectations of a sharp listing-day pop.The grey market premium of around 15% points to moderate upside on debut rather than an explosive rally. Analysts expect a stable listing, supported by strong anchor participation of over Rs 3,021 crore and robust institutional demand.