ICICI Prudential Asset Management's $1.2 billion initial public offering was fully subscribed on the second day of bidding on Monday, as institutional investors lined up for a piece of India's second-largest fund manager.
The country's fourth-largest IPO this year puts India on track for a second straight year of record primary market fundraising.
ICICI Prudential Asset Management is a joint venture between ICICI Bank, India's second-largest private lender, and British insurer Prudential. The IPO does not involve any issue of new shares.
Prudential, which owned 49% of the asset manager as of December 5, is selling 10% of its stake in the IPO, which closes on Tuesday. Prudential had sold 4.5% stake ahead of the public launch of the issue.
As of 10:45 a.m. IST, the IPO received bids for 35.02 million shares, against 34.98 on offer, exchange data showed.
The upper end of the IPO band of 2,061 to 2,165 rupees per share values the company at 40 times its fiscal year 2025 earnings, which is fair compared with other top-listed players such as HDFC AMC and Nippon Life India AMC, Mumbai-based Anand Rathi Share and Stock Brokers said. Qualified institutional buyers bid for twice the shares reserved for them, and portions set aside for non-institutional investors and ICICI Bank's shareholders were also fully subscribed.
Meanwhile, the retail investors' portion was subscribed 36%.
"We expect moderate listing gains, given the size of the issue. But investors should see this as a good stock to hold in their portfolio from a longer-term perspective," said Astha Jain, a senior research analyst at Mumbai-based Hem Securities. The fund house managed more than Rs 10 trillion ($110.7 billion) of assets, with a 13.2% market share, as of September-end. Its assets under management grew at a compounded annual rate of 32.7% between fiscal years 2023 and 2025.
