ICICI Pru AMC could gain up to 10-20% on debut

Synopsis

ICICI Prudential Asset Administration’s IPO saw a famous subscription, indicating a likely company market debut with capability itemizing features of 10-20%. Analysts counsel the inventory may maybe possibly presumably list above ₹2,500, with some assigning a ‘Aquire’ rating and a ticket target of ₹3,000. The corporate’s robust fundamentals and industry tailwinds back long-duration of time whisper possibilities.

Mumbai: ICICI Prudential Asset Administration is prone to create an organization market debut on Friday because the bidding trot in its contemporary preliminary public offering (IPO) functions to robust investor appetite for the inventory.

“Looking at the phenomenal response to the IPO, there is a likelihood of listing gains to the tune of 10-20%,” said Sunny Agrawal, head of primary study at SBI Securities. The corporate sold shares at ₹2,165 apiece within the difficulty.

The ₹10,602.65-crore bid used to be subscribed 39.17 cases.

The grey market top rate (GMP) – the additional ticket traders are prepared to pay over the IPO ticket within the unofficial market earlier than itemizing – for ICICI Prudential’s shares used to be up to ₹375, or 17.3%, on Thursday evening, based entirely on ipowatch.in. This implies the inventory may maybe possibly presumably list at above ₹2,500.

Brokerage PL Capital assigned a ‘Aquire’ rating with a ticket target of ₹3,000 on the inventory, implying an upside of 38.6% from the difficulty ticket

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Gray market top rate for shares of AMC rose to ₹375, or 17.3%, on Thursday

The brokerage cloak said ICICI Prudential AMC may maybe possibly presumably within the damage bid a top rate to HDFC AMC due to the easier distribution and diversification while declaring an identical profitability.

At the upper ticket band, ICICI Prudential AMC, the 2nd most attention-grabbing fund house within the nation, is trading at a ticket-to-earnings (P/E) a pair of of 33 cases, when compared with 41 cases for HDFC AMC and 39 cases for Nippon Life India Asset Administration, Agrawal said. HDFC is India’s third-most attention-grabbing mutual fund by resources with a market cap of ₹1.17 lakh crore, while Nippon is the fourth on this list with a market cap of ₹56,000 crore. The IPO priced ICICI Prudential AMC at ₹1.07 lakh crore.

“The issue is fully priced at its post-issue price-to-earnings multiple of 33 times FY25 earnings,” said Vaqarjaved Khan, senior primary analyst at Angel One. “However, the company’s leadership across active and individual assets under management (AUM), strong profitability and return ratios, a debt-free balance sheet, and supportive industry tailwinds provide healthy visibility for compounding.”

Khan said traders, who received fragment within the IPO, have to preserve the shares for the long duration of time, while contemporary traders may maybe possibly presumably look forward to a minor dip or make investments in a staggered components if the put up-itemizing trot-up is arresting.

Agrawal also said the regulatory overhang from adjustments within the mutual fund rate construction is now at the back of the industry, and there is readability on the influence of the regulatory adjustments. “The impact is likely to be minuscule on earnings. Long-term growth prospects are healthy in the backdrop of strong fresh inflows and likely long-term capital appreciation of 9-12%, aiding AUM growth,” he said.

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