Is ICICI Pru AMC’s IPO a compelling bet for investors with a high-risk appetite and a long-term horizon?

ET Intelligence Group: ICICI Prudential AMC plans to boost as much as ₹10,600 crore by means of a proposal on the market by Prudential Corp Holdings. The promoter shareholding will decline to 90.1% from 100% after the IPO. The problem is priced on the higher finish of sector valuations, reflecting the corporate’s sturdy progress in belongings underneath administration and a rising investor base. Nonetheless, the corporate’s efficiency depends closely on retail buyers and is uncovered to market volatility. Given these components, the difficulty seems to be appropriate for buyers with a excessive danger urge for food and a long-term funding horizon.

Enterprise

Integrated in 1993, ICICI Prudential AMC gives portfolio administration providers (PMS), different funding fund (AIF), and advisory providers. It’s the largest AMC in India when it comes to lively mutual fund quarterly common asset underneath administration (QAAUM) with a market share of 13.3% as of September 30, 2025. As of September 2025, it had an lively QAAUM of ₹8.6 lakh crore, rising year-on-year at 18.6%, outpacing the business progress charge of 16.8%. It managed 143 schemes as of September 30, 2025, the most important variety of schemes within the mutual fund business. Its particular person buyers base reached 15.5 million as of September 30, 2025, accounting for 61% of complete mutual fund month-to-month AAUM and 85.7% of fairness and equity-oriented schemes month-to-month AAUM as of September 30, 2025. Retail buyers are likely to favour fairness oriented schemes, which usually entice larger funding administration charges as in contrast with non-equity oriented schemes. Past mutual funds, its different enterprise added ₹72,930 crore in QAAUM as of September 30. It faces regulatory dangers, as modifications akin to caps on complete expense ratios or stricter compliance norms could compress margins and push up operational prices.

Financials
Income elevated to ₹4,683 crore in FY25 from ₹2,689 crore in FY23 whereas web revenue rose to ₹2,651 crore from ₹1,516 crore through the interval. In the course of the first half of FY26, income reached ₹2,733 crore from ₹2,187 crore within the year-ago interval whereas web revenue rose to ₹1,618 crore from ₹1,327 crore by related comparability. The entire QAAUM elevated to ₹8,79,410 crore in FY25 from ₹4,99,630 crore in FY23 whereas lively QAAUM elevated to ₹7,55,230 crore from ₹4,49,240 crore through the interval. Return on fairness improved to 82.8% in FY25 from 70% in FY23.

Valuation

Based mostly on annualised revenue for six months to September 2026, the price-earnings (P/E) a number of works out to 33, in contrast with 18-36 for friends together with HDFC AMC, Nippon Life India Asset Administration, UTI AMC and Aditya Birla Solar Life AMC. As well as, it instructions a market capitalisation-to-AUM a number of of 10.5 in contrast with four-thirteen for friends.