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BACKGROUND

Company Background:

ICICI Prudential AMC, a joint venture between ICICI Bank and Prudential since 1998, is India’s largest asset manager by active mutual fund QAAUM, holding a 13.3% market share as of September 2025. It leads the industry across key categories, including Equity and Equity Oriented (13.6%) and Equity-Oriented Hybrid schemes (25.8% share), supported by a comprehensive suite of 143 mutual fund schemes. The company also offers PMS, AIF and offshore advisory services through its growing alternates business. Its distribution is extensive and multi-channel, comprising 272 offices, 110,719 MFDs, 213 national distributors, 67 banks and significant support from ICICI Bank’s network, with equity QAAUM sourced from MFDs (37.7%), national distributors (15.8%), direct channels (27.1%), ICICI Bank (8.3%) and other banks (11.1%).

Details of the Issue:

The public issue comprises an Offer for Sale of 4.90?Cr shares by Prudential, aggregating to Rs. 10,602.65?Cr.

Investment Rationale

* Diversified and Innovative Product Suite

* Established Brand and Culture

* Market Leadership Across Active, Equity, and Hybrid Categories

* Pan-India Multi-Channel Sales & Distribution Network

* Largest and High-Quality Individual Investor Franchise

Valuation and Recommendation: -

ICICI Prudential AMC is offered at a reasonable valuation as compared to its larger peers like HDFC AMC and Nippon Life AMC, supported by its industry-leading scale and consistently strong financial performance. The company commands the highest Total MF QAAUM at Rs. 8.79 lakh cr, along with a solid Active MF QAAUM of Rs. 7.55 lakh crore. Growth trends remain robust, reflected in a 30% Active MF CAGR (FY23–25) and a 31.8% Revenue CAGR, both materially ahead of the industry’s 21.5%. Profitability remains strong, with an industry-leading EBITDA margin of 71.7% and a robust ROE of 75.4%. At 31.4x EV/EBITDA and 40.4x P/E, the stock is priced at a discount compared to major industry peers. Given its leading market position, strong growth trajectory, and superior return profile, we assign a “Subscribe” rating with positive outlook.

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SEBI Registration number is INH00000176