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If you’ve ever started a SIP, picked an equity fund on a mobile app, or discussed “mutual funds sahi hai” with a friend, there’s a good chance your money passed through ICICI Prudential AMC.
Now, the company that manages investments for over 14 million Indians is heading to the stock market itself.
On July 8, 2025, ICICI Prudential Asset Management Company filed its draft red herring prospectus (DRHP) with SEBI for an initial public offering. Backed by ICICI Bank and UK-based Prudential Corporation Holdings, this IPO marks a major shift in ownership of India’s second-largest asset manager and opens the doors for retail investors to own a slice of the mutual fund business they already trust with their money.
Here’s a detailed look at what the IPO entails.
IPO snapshot
About the company:
ICICI Prudential AMC is a leading asset management company in India, holding a 13.3% market share in active quarterly average AUM (QAAUM) as of March 31, 2025. The company has been operating as a joint venture between ICICI Bank and UK-based Prudential Corporation Holdings since 1998. It serves a customer base of 14.6 million investors and offers one of the most extensive mutual fund portfolios in the country.
As of March 2025, ICICI Prudential AMC manages 135 mutual fund schemes. These include 42 equity and equity-oriented schemes, 20 debt schemes, 56 passive funds (including exchange-traded funds), 14 domestic fund-of-fund schemes, one liquid scheme, one overnight scheme, and one arbitrage scheme. The company distributes its products through multiple channels such as ICICI Bank’s network, independent financial advisors, national distributors, and its digital platforms, allowing it to reach a wide investor base across the country.
Financial performance
In FY25, ICICI Pru AMC reported a turnover of ₹4,980 crore and a profit after tax of ₹26.51 crore. Its total assets stood at ₹4,384 crore as of March 31, 2025.
* As of March 31 | Data taken from DRHP Page 17
Despite high AUM and leadership, the PAT is relatively modest. The DRHP attributes part of this to regulatory fee caps, increased tech investments, and competitive compression in management fees.
Backers and buyers
Pre-IPO shareholding is:
- ICICI Bank: 51%
- Prudential Corporation Holdings Ltd (PHCL): 49%
The IPO is a pure Offer for Sale (OFS) by PHCL for 1.76 crore equity shares, amounting to 10% of the company’s paid-up capital. ICICI Bank is not diluting its stake—in fact, it has announced a plan to increase its holding by 2% via a separate transaction, bringing its ownership to 53% post-IPO.
There is no fresh issue, and no capital will be raised for ICICI Pru AMC itself.
The IPO funds will be used for
The company will not receive any proceeds from the IPO.
The entire ₹10,000 crore (estimated) raised will go to Prudential Corporation Holdings, reducing its stake and partially exiting the JV. ICICI Pru AMC’s balance sheet and business operations remain unaffected in terms of cash inflow or equity dilution.
Risk factors to consider
The DRHP outlines several key risks:
- High dependency on capital market cycles: Volatility impacts inflows, redemptions, and fee income
- Fee compression: Due to SEBI’s regulatory limits on TER (Total Expense Ratio), revenue per AUM is declining
- Low margin business: Despite scale, FY25 PAT was only ₹26.5 crore on nearly ₹5,000 crore turnover
- Client concentration: A significant portion of QAAUM is sourced from ICICI Bank and related distributors
- Competition: From HDFC AMC, Nippon India AMC, SBI Funds Management, and growing fintech-led AMCs
The company also faces technology risks, regulatory uncertainty, and potential changes in investor behavior as digital platforms rise.
Final take
ICICI Pru AMC brings to market a scale-backed business with a dominant footprint in India's ₹74.79 Trillion mutual fund industry. Its leadership in a number of schemes and strong ICICI brand backing make it a key institutional player.
However, this IPO is not a growth capital story, it’s a strategic exit by the foreign JV partner. Investors will need to weigh brand strength and distribution reach against muted profitability and zero capital infusion.
This may be a vote of confidence in the AMC model but it also places the spotlight on cost efficiency and yield-on-AUM performance in the quarters ahead.
FAQs
What is the ICICI Prudential AMC IPO about?
The IPO is a public offering of shares by ICICI Prudential Asset Management Company, India’s second-largest asset manager. It allows retail and institutional investors to buy equity in the mutual fund company.
Is ICICI Prudential AMC issuing new shares in this IPO?
No. The IPO is a 100% Offer for Sale (OFS) by Prudential Corporation Holdings. There is no fresh issue, and the company will not receive any capital from the IPO.
Who is selling shares in the ICICI Prudential AMC IPO?
Prudential Corporation Holdings, the UK-based joint venture partner, is offering 1.76 crore shares as part of the OFS.
What is the estimated IPO size of ICICI Prudential AMC?
As per media reports, the IPO is expected to raise around ₹10,000 crore, valuing the company at approximately $12 billion.
When will the ICICI Prudential AMC IPO open?
The IPO dates are yet to be announced. It will open sometime after the July 8, 2025 DRHP filing with SEBI.
What is ICICI Prudential AMC’s business model?
The company manages 135 mutual fund schemes, including equity, debt, passive, and hybrid funds. It earns fees from managing these investments and distributing them through banks, advisors, and digital platforms.
What is ICICI Prudential AMC’s financial performance?
In FY25, the company reported ₹4,980 crore in turnover and ₹26,506 million in net profit, with an ROE of 82.8%.
Who are the major shareholders of ICICI Prudential AMC before the IPO?
ICICI Bank holds 51%, and Prudential Corporation Holdings holds 49% of the company. Post-IPO, ICICI Bank plans to increase its stake to 53%.
Will ICICI Prudential AMC benefit financially from this IPO?
No, the company itself will not receive any funds from the IPO. All proceeds go to the selling shareholder, Prudential Corporation Holdings.
What are the key risks associated with investing in ICICI Prudential AMC?
Risks include revenue pressure from regulatory fee caps, dependence on market cycles, margin compression, distributor concentration, and growing competition from fintech AMCs.
