ICICI Prudential AMC’s IPO made its debut on NSE and was priced at Rs 2,600, which is a 20% premium over the issue price, and was the result of a 39x subscription. The stock reached Rs 2,663 at the peak before profit-taking brought it down to Rs 2,575. Among others, Prabhudas Lilladher has given a BUY recommendation with a target price of Rs 3,000.
Strong Debut Performance
Initially, the Rs 10,603-crore OFS IPO had its listing on NSE marked by a significant 20.09% premium, and it then went on to achieve the 52-week high of Rs 2,663.40 during the intraday session. By the end of the morning, the stocks were traded at Rs 2,605, which was an upsurge of 20% from the IPO price, and the firm had a market capitalisation of Rs 1.3 lakh crore. On the BSE, it got listed at Rs 2,606, which was a gain of 20.38%. The share reserved for retail subscription was 2.53 times oversubscribed.
Key Financial Strengths
ICICI Prudential AMC takes the lead in the flows coming to equities and also has the highest equity in the Q1 quintile, with 90% of the total assets. Operating margins have been stable at 73-74% and that has been a risk-efficient performance since the concentration has been low. Non-MF revenue at 9.2% just edges the competition; meanwhile, ICICI Bank has sold 74% of its total MF sales. Leading the pack in terms of 1-year returns.
Valuation and Risks
P/E at 40.4x FY25/33.1x H1FY26 corresponds to HDFC/Nippon AMCs, but the P/B ratio is significantly higher at 27-30x compared to peers’ 10-14x. The company’s not raising fresh capital for growth creates concerns amidst high valuations. The profit booking post-peak also sends signals about the caution that is needed.
Buy, Sell, or Hold?
According to brokers (PL Capital, Prabhudas), the stock has a 39% upside to Rs 3,000, which is a result of leadership in flows and strong parentage, and they say it’s a BUY. Long-term investors: Buy on dips. Short-term allottees: Book partial profits at 20% gains, trail stops. Risk-averse: Hold for a medium-term period.
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