ICICI Prudential AMC IPO: Big brand, mega issue; but GMP slipping

Kolkata: Grey Market Premium, or GMP, of a public issue is an unofficial indicator, is extremely volatile and cannot guarantee anything, gain (or loss) on listing. Yet investors set great store by it and analysts often interpret it as a marker of the level of enthusiasm of investors in a public issue. The ICICI Prudential AMC IPO is set to flag off its bidding process on Dec 10. But despite the importance of the AMC in the mutual funds market, there has been a sharp drop in the GMP of the issue over the past few days. ICICI Pru is one of the most significant public issues in the market in 2025, which is being labelled as the year of IPOs.

Dec 9: Rs 85

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Listing gain: 3.92%

Dec 8: Rs 125

Listing gain: 5.77%

Dec 6: Rs 340

There is no clear explanation so far on why the GMP has dropped so dramatically. But there could be a few pointers. The recent volatility in the secondary markets could be impacting investor sentiment negatively. Also the issue comprises only OFS or Offer for Sale shares. A total of 4.9 crore shares will be sold by Prudential Corp Holding. The IPO will open on December 12 and close on December 16. The proceeds of OFS shares go the existing shareholders who offload their stake and the money doesn't accrue to the company. Also a low GMP itself offers a negative rub off on common investors -- they often construe it as a market of the investor sentiment around an issue.

The ICICI Prudential AMC IPO price band has been fixed at Rs 2,061-2,165 per share. The anchor investment round will take place on Dec 11. The basis of allotment will be decided on Dec 17 and listing will take place on Dec 19.

To manage this mega issue, ICICI Pru AMC has appointed a battery of lead managers -- Citigroup, Morgan Stanley, BofA, Axis Securities, CLSA, IIFL Capital, Kotak Mahindra Capital, SBI Caps, ICICI Bank, Goldman Sachs, Avendus, BNP Paribas, HDFC Bank, JM Financial, Motilal Oswal, Nuvama and UBS.

ICICI Prudential AMC is a giant in the domestic MF industry and is the country's second-largest asset manager. This ranking takes into consideration quarterly average assets under management and ICICI Pru AMC is found to command 13.2% market share. It posted a PAT of Rs 1,618 crore and revenue of Rs 2,949.4 crore for the H1FY26 period. This is an improvement from the PAT and revenue figures a year ago by 21.9% and 20%. For the entire FY25, PAT jumped 29.3% to reach Rs 2,650.7 crore. Revenue surged 32.4% in FY25 to touch Rs 4,977.3 crore. The AMC boasts of as many as 143 mutual fund schemes -- the most by any AMC in India.