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Salient features of the IPO:

* ICICI Prudential Asset Management Company Ltd. (IPAMCL), Incorporated in 1993, is one of India’s oldest asset management firms, with a track record of over 30 years in the industry. Its investment philosophy prioritizes risk management while targeting long-term returns for investors, helping the brand remain consistently trusted. IPAMCL is the second-largest asset management company (AMC) in India by quarterly average assets under management (QAAUM), holding a 13.2% market share as of September 30, 2025. It serves a customer base of 15.5 million as of the same date. Since 1998, the company has operated as a joint venture between ICICI Bank and Prudential Corporation Holdings Ltd.

* This public issue is a solely comprise of OFS (Rs. 10,093.3 - 10,602.7cr). The company will not receive any proceeds from the OFS portion.

Key competitive strengths:

* Largest AMC in India in terms of assets managed under active mutual fund schemes and equity and equity oriented schemes

* Largest Individual Investor franchise in India in terms of mutual fund AUM

* Diversified product portfolio across asset classes

* Pan-India, multi-channel and diversified distribution network

* Investment performance supported by comprehensive investment philosophy and risk management

* Trusted brand and strong culture

Business strategy:

* Maintain focus on investment performance with a risk calibrated approach

* Expand customer base through distinct initiatives, increase penetration in existing and new markets and strengthen relationships with distributors

* Grow Alternates business

* Diversify product portfolio to suit dynamic customer needs

* Leverage technology and scale digital capabilities to drive customer acquisition, enhance customer experience

Risk and concerns:

* Adverse market or economic conditions may affect the business

* Business is subject to extensive regulation

* Concentration in investment schemes could have an adverse effect on business

* Future scalability and profitability of the new products cannot be assured

* Competition

Valuation Overview and IPO Rating

IPAMCL ranks as the second-largest AMC in India by QAAUM, with a market share of 13.2% as of September 30, 2025. One of the oldest asset managers in the country, the company has delivered strong growth in both revenue and profitability over the years. As of September 2025, IPAMCL maintains a welldiversified AUM profile, with its top five equity and equity-oriented schemes accounting for 53.4% of total equity QAAUM, compared with the top-10 AMC average of 58.6%.

At the upper end of the price band, IPAMCL is valued at a P/QAAUM of 10.5% and a P/E of 36.4x (based on TTM EPS of Rs. 59.5), implying a fully priced valuation relative to peers. The company, however, commands the highest RoE among listed AMCs, reflecting efficient capital utilisation and strong operating margins. Its equity and equity-oriented QAAUM is well diversified across MFDs (37.7%), national distributors (15.8%), direct channels (27.1%), ICICI Bank (8.3%), and other banks (11.1%), reducing concentration risk. Supported by a diversified product mix and increasing mutual fund penetration, IPAMCL was the most profitable AMC in India in FY25 with a 20.0% share of operating profit before tax. Considering its strong franchise, profitability leadership, and operational efficiency, we assign a “Subscribe for Long Term” rating for this issue.

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