Even before ICICI Pru listing, PL Capital takes a bet; signals Buy with 45% upside

Kolkata: Come Friday, Dec 19, and ICICI Pru AMC shares will be listed on BSE and NSE. The entire investor world is eager to see the listing price of ICICI Pru AMC shares. But even before the listing, prominent Indian brokerage PL Capital (earlier Prabhudas Lilladhar) has assigned a Buy rating for the stock and has also set up a target price for ICICI Pru AMC shares.

PL Capital has set a target price of Rs 3,000 for the stock. Considering the issue price of Rs 2,165, the target price represents an upside of 38.56%. The brokerage believes ICICI Prudential AMC holds a strong and dominant position in the mutual fund industry, which is on a high growth path. The PL Capital report states that they have set a target price of Rs 3,000 for the stock based on a valuation multiple of 38 times its September 2027 core EPS.

PL Capital highlighted that ICICI Pru AMC has demonstrated the best performance in the past one year besides being ranked consistently among the top three since February 2022.

According to investorgain, ICICI Pru AMC IPO GMP stood at Rs 356 on Dec 17, which is the allotment date. Considering an issue price of Rs 2,165, the estimated listing price of the shares could be Rs 2,521. At this level it signals a listing gain of 16.44%. Significantly, the GMP of the IPO has been rising steadily from the level of Rs 150 on Dec 11. However, the GMP of an IPO is an unofficial indicator that changes with time and does not guarantee any listing gain or loss.

The ICICI Pru AMC IPO price band was set at Rs 2,061 to Rs 2,165. For the retail investor, the smallest investible lot has six shares. For a retail investor, the minimum investment was Rs 12,990, based on the upper price band. For an sNII investor, the minimum investible lot is 16 lots or 96 shares, while for bNII investors the smallest lot is 77 lots or 462 shares.