ICICI Prudential Asset Management Company
- ICICI Prudential Asset Management Company is coming out with a 100% book building; initial public offering (IPO) of 4,89,72,994 shares of face value Rs 1 each in a price band Rs 2061-2165 per equity share.
- Not more than 50% of the issue will be allocated to Qualified Institutional Buyers (QIBs), including 5% to the mutual funds. Further, not less than 15% of the issue will be available for the non-institutional bidders and the remaining 35% for the retail investors.
- The issue will open for subscription on December 12, 2025 and will close on December 16, 2025.
- The shares will be listed on BSE as well as NSE.
- The face value of the share is Rs 1 and is priced 2061.00 times of its face value on the lower side and 2165.00 times on the higher side.
- Book running lead managers to the issue are Citigroup Global Markets India, ICICI Securities, Morgan Stanley India Company, Goldman Sachs (India) Securities, BofA Securities India, Avendus Capital, Axis Capital, BNP Paribas, CLSA India, HDFC Bank, IIFL Capital Services, JM Financial, Kotak Mahindra Capital Company, Motilal Oswal Investment Advisors, Nomura Financial Advisory and Securities (India), Nuvama Wealth Management, SBI Capital Markets and UBS Securities India.
- Compliance Officer for the issue is Rakesh Shetty.
Profile of the company
ICICI Prudential Asset Management Company (ICICI Prudential AMC) is the largest asset management company in India in terms of active mutual fund quarterly average assets under management (QAAUM) with a market share of 13.3% as of September 30, 2025. As of September 30, 2025, its total mutual fund QAAUM was Rs 10,147.6 billion. As of September 30, 2025, the company was the largest asset management company in terms of Equity and Equity Oriented QAAUM with market share of 13.6%. The company’s Equity Oriented Hybrid Schemes also had the largest market share in India, as of September 30, 2025 and as of March 31, 2025, 2024 and 2023. As of September 30, 2025, it was the largest asset management company in terms of Equity Oriented Hybrid QAAUM with market share of 25.8%. As of September 30, 2025, the company’s mutual fund monthly average asset under management (MAAUM) attributable to individual investors (comprising retail investors and high-net-worth individuals) (Individual Investors) was Rs 6,610.3 billion. This represented the highest Individual Investor MAAUM in the Indian mutual fund industry with a market share of 13.7%. In addition to its mutual fund business, the company also has a growing alternates business comprising portfolio management services (PMS), management of alternative investment funds (AIFs) and advisory services to offshore clients (PMS, AIF and advisory, collectively “Alternates”).
The company is one of the oldest asset management companies in India with history of over 30 years in the asset management industry. The company’s investment approach has always been to manage risk first and aim for long term returns for its customers whilst ensuring that its brand continues to remain trusted. The company ranked as the second largest asset management company in India, in terms of QAAUM, with a market share of 13.2% as of September 30, 2025. It serves a customer base of 15.5 million customers, as of September 30, 2025. It delivers a range of investment products across multiple financial asset classes, to address a diverse spectrum of its clients’ objectives and risk appetites, from income accrual to long-term wealth creation.
The company offers a suite of investment products and advisory services under its Alternates business which caters to the preferences of Individual Investors and institutional investors (comprising banks, insurance companies, corporates, and government entities, collectively, Institutional Investors). Its Alternates investment product portfolio includes, equity-focused PMS and AIFs, private credit, long-short strategies and office yield funds, which has a QAAUM of Rs 400.2 billion, as of September 30, 2025. Equity-focused PMS and AIFs invest in companies of various sizes and follow a range of investment strategies. It also provides investment advisory services as part of its offshore advisory business and are currently advising Eastspring Investments (Eastspring), Prudential plc’s (Prudential) asset management arm, on select equity and debt products which are distributed across markets such as Japan, Taiwan, Hong Kong and Singapore.
Proceed is being used for:
- Carrying out the Offer for Sale of Equity Shares of face value of Rs 1 each by the Promoter Selling Shareholder
- Achieving the benefits of listing the Equity Shares on the Stock Exchanges
Industry Overview
The Indian mutual fund industry has experienced significant growth over the past five years, driven by a thriving domestic economy, substantial inflows, and increased participation from individual investors. Industry is witnessing a surge in growth, driven by equity space, where assets have increased significantly over the past decade. This shift is attributed to retail investors transitioning from traditional debt products to equity funds, resulting in a substantial rise in equity investments. Mutual fund AUM as a proportion of bank deposits in scheduled commercial banks has risen from 19.7% in March 2020 to 28.7% as of March 2025 indicating increase in investor participation in mutual funds. QAAUM surged by more than Rs 13 trillion, reaching a record high of Rs 67.4 trillion by March 2025 from Rs 54.1 trillion in March 2024. As of September 2025, QAAUM reached Rs 77.1 trillion, depicting continued growth momentum. Over the six-year period, the QAAUM grew at a CAGR of 18.4%, increasing from Rs 24.5 trillion as on March 2019 to Rs 67.4 trillion as on March 2025.
In H1 Financial Year 2026, the growth momentum continued with a year-on-year growth of 16.5%. The outstanding performance of equity-oriented funds, significant progress in hybrid funds, rising penetration in B30 cities and the rising popularity of systematic investment plans (SIPs) which have seen higher participation by individual investors, were key factors contributing to growth. Individual AUM from retail and high net worth investors constituted 52% of total MF AUM as on March 2020 which increased to 60.7% as on March 2025 and 60.9% as on September 2025. Also, in fiscal 2025, monthly SIP flows remained consistently above Rs. 200 billion from April 2024 to March 2025 and above Rs 250 billion from April 2025 to September 2025, highlighting consistent stability of flows from SIPs. The trajectory of the mutual fund industry in the last year is indicative of its adaptability to shifting market conditions as well as its durability. These insights can act as a compass for investors as they make their way through the complex financial landscape, enabling them to make well-informed decisions and capitalize on the industry’s potential for long-term success.
India's mutual fund industry is witnessing a notable shift, with smaller cities, referred to as Beyond 30 (B-30) cities, emerging as significant growth drivers, alongside the established Top 30 (T-30) cities. Historically, T-30 cities have accounted for approximately 75-80% of the total assets under management (AUM), owing to their mature financial markets and higher financial literacy. However, B-30 cities, which are mid-sized and have limited financial infrastructure, are rapidly catching up. Furthermore, assets from B30 locations witnessed a 21% CAGR, rising from Rs. 3.80 trillion in March 2019 to Rs. 12.17 trillion in March 2025 and further rose to 14.50 trillion in September 2025. This surge can be attributed to increasing financial awareness and enhanced distribution channels in these smaller cities, which are now making a significant contribution to the mutual fund sector. Overall, the growth of mutual fund contributions from small cities in India is a positive trend, driven by increasing financial literacy, digitalization, and government initiatives.
Pros and strengths
India’s Largest AMC by Active & Equity QAAUM: The company is the largest asset management company in India in terms of active mutual fund QAAUM with a market share of 13.3% as of September 30, 2025. It has ranked as the second largest asset management company in India, in terms of QAAUM, with a market share of 13.2% as of September 30, 2025. As of September 30, 2025, it was the largest asset management company in terms of Equity and Equity Oriented QAAUM with market share of 13.6%. Its mutual fund equity and equity oriented QAAUM grew to Rs 4,876.5 billion as of March 31, 2025, representing a CAGR of 40.0% from March 31, 2023 as compared to 36.2% for the mutual fund industry during this period. In addition to its mutual fund business, it also has a growing Alternates business comprising PMS, AIFs and offshore advisory services, with a QAAUM of Rs 729.3 billion as of September 30, 2025.
Strong individual investor base driving stable AUM: As of September 30, 2025, the company’s mutual fund MAAUM attributable to Individual Investors was Rs 6,610.3 billion, representing the highest Individual Investor MAAUM in the Indian mutual fund industry with a market share of 13.7%. Individual Investors accounted for 61.1% of its total mutual fund MAAUM and accounted for 85.7% of its equity and equity oriented schemes MAAUM as of September 30, 2025. Individual Investors tend to favor equity oriented schemes, which generally attract higher investment management fees as compared to non-equity oriented schemes. In addition, Individual Investors generally tend to have longer holding periods, contributing to a more stable asset base. As of September 30, 2025, it had 15.5 million Individual Investors.
Extensive scheme range supporting investor needs: The company relies on its well-diversified product suite to enable it to cater to the varying needs and risk-return profiles of its customers and navigate changing economic conditions. As of September 30, 2025, it managed 143 mutual fund schemes, which is the largest number of schemes managed by an asset management company in India. No single mutual fund scheme accounts for more than 7.1% of its mutual fund QAAUM as of September 30, 2025. It has consistently focused on developing differentiated investment products tailored to meet long-term investor objectives across diverse market conditions. The company has been one of the asset management companies, which have been at the forefront of product innovation.
Largest Pan-India distributor base with rapid digital penetration: The company has established an extensive and geographically diversified Pan-India distribution network comprising 272 offices across 23 states and four union territories. Its distribution model is targeted to be balanced and multi-channelled, encompassing both physical and digital platforms, and is supported by its salesforce. The company’s distribution network consists of 1,10,719 institutional and individual MFDs, 213 national distributors, 67 banks (including ICICI Bank) as of September 30, 2025. It leverages the extensive distribution network of ICICI Bank, one of its Promoters and a registered MFD. It maintains an established online footprint through a comprehensive digital platform ecosystem, comprising a network of digital distribution, with its website and mobile application ‘i-Invest’ catering to both its investors and distributors. The total number of mutual fund purchase transactions carried out through digital platforms (excludes recurring SIP transactions and includes new SIP registrations) was 11.0 million in the six-months period ended September 30, 2025, 20.9 million in the Financial Year 2025 which increased from 13.0 million in the Financial Year 2024 and 10.1 million in the Financial Year 2023. Furthermore, for six-months period ended September 30, 2025, 95.3% of its mutual fund purchase transactions were executed across digital platforms.
Risks and concerns
Scheme concentration exposing AUM to performance risks: A significant portion of its mutual fund AUM is concentrated in a few schemes. The company has garnered 54.00%, 56.40% and 58.20% of its revenue from Five of its largest Equity and Equity Oriented Schemes as a percentage of its total Equity and Equity Oriented Schemes QAAUM (in percentage). The performance of these schemes may have a significant effect on its AUM and consequently on its results of operations. Such concentrations in its schemes could increase the risk that, in the event it experiences an adverse event in connection with any of these investments, its business, results of operations, financial condition and cash flows could be affected.
Brand and reputation risk linked to promoter groups: The company benefits from the brand and reputation of its Promoters, ICICI Bank Limited and Prudential Corporation Holdings Limited and entities forming part of the ICICI group and the Prudential group. Its business, results of operations, financial condition and cash flows are, to a certain extent, dependent on the strength of its brand and reputation, as well as the brand and reputation of ICICI Bank Limited and Prudential Corporation Holdings Limited and the entities forming part of the ICICI group and the Prudential group. Any harm to the reputation of ICICI group entities or Prudential group entities could adversely affect its business, results of operations, financial condition and cash flows.
Talent retention challenges impacting operations: The company’s employee attrition rate was 26.20%, 25.50%, 26.00%, 31.10% and 33.00% for the six-months periods ended September 30, 2025 and September 30, 2024 and the Financial Years 2025, 2024 and 2023, respectively. Its business depends substantially on the efforts of its employees, particularly, its Key Managerial Personnel, Senior Management, and failure to attract or retain such persons could adversely affect its business, results of operations, financial condition and cash flows.
Intense competition in the asset management industry: It is the largest asset management company in India in terms of active mutual fund QAAUM with a market share of 13.3% as of September 30, 2025. The asset management industry in India is competitive. The increased competition from new players entering the market will drive fund managers to be more innovative and agile in their investment strategies, as they strive to attract and retain investors. Competition in this industry is based on several factors, including investment performance, investment management fee rates, continuity of investment professionals and investor relationships, the quality of services provided to investors, reputation, continuity of selling arrangements with distributor partners, differentiated products, and alternate savings and investment products such as bank deposits, gold, real estate, insurance and retirement products such as unit linked insurance plans which may provide favorable taxation options to investors. Other financial companies in India may also be subject to different regulations, which may permit them to compete more effectively in the market for investment products.
Outlook
ICICI Prudential AMC is an Asset Management Company. Its investment approach has always been to manage risk first and aim for long term returns for their customers. The company offers Portfolio Management Services (PMS), Alternative Investment Fund (AIF), and Advisory services to offshore clients. It is the largest asset management company in India in terms of assets managed under active mutual fund schemes. On the concern side, the company depends on the strength of brand and reputation of its Promoters, as well as the brand and reputation of other ICICI group entities and Prudential group entities. Any harm to the reputation of ICICI group entities or Prudential group entities could adversely affect its business, results of operations, financial condition and cash flows. Moreover, the company operates in a highly regulated industry and any breach of applicable regulations may lead to adverse action by the regulator. Further, changing laws, rules and regulations as well as legal uncertainties in India may adversely affect its business, results of operations, financial condition and cash flows.
The issue has been offering 4,89,72,994 shares in a price band of Rs 2061-2165 per equity share. The aggregate size of the offer is around Rs 10,093.33 crore to Rs 10,602.65 crore based on lower and upper price band respectively. Minimum application is to be made for 6 shares and in multiples thereon, thereafter. On performance front, the company’s revenue from operations increased by 32.4% to Rs 49,773.3 million for the Financial Year 2025 from Rs 37,582.3 million for the Financial Year 2024. Moreover, the company’s profit for the year increased by 29.3% to Rs 26,506.6 million in the Financial Year 2025, compared to Rs 20,497.3 million in the Financial Year 2024.
The company is committed to the continuous expansion and diversification of its mutual fund products to align with evolving investor requirements and regulatory developments. The company is governed by a regulatory framework relating to the development and launch of new fund offerings. It consistently integrates insights from its investment teams, distributor network, and investors. This enables it to adapt its existing product suite and introduce new schemes that are aligned with investor demand and prevailing market conditions. Its experience across various market cycles empowers it to design investment solutions that meet the diverse needs of its varied customer segments. This approach includes prioritizing Systematic Transactions as a pivotal lever for long-term growth. It also aims to enhance its engagement with high-net-worth individual clients by expanding its dedicated product specialist salesforce. Additionally, it plans to introduce specialized investment fund offerings, subject to requisite regulatory approvals, to further strengthen its presence within the affluent investor segment.
