ICICI Prudential AMC IPO fully subscribed, GMP hovers around 13%
What's the story
The initial public offering (IPO) of ICICI Prudential Asset Management Company Ltd, a subsidiary of ICICI Bank, has been fully subscribed on the second day of its share sale. According to data from the National Stock Exchange (NSE), the IPO received bids for 4,97,60,868 shares against 3,50,15,691 shares on offer. This translates into a subscription rate of 1.42 times as of Monday afternoon. At the time of writing, the GMP stood at ₹272, translating into listing gains of nearly 13%.
Investor response
Subscription details and anchor investor funding
The non-institutional investors' portion of the IPO was subscribed 2.32 times, while the quota for Qualified Institutional Buyers (QIBs) was subscribed 2.04 times. The Retail Individual Investors (RIIs) category received a subscription of 61%. Earlier this week, ICICI Prudential Asset Management Company had announced that it raised approximately ₹3,022 crore from anchor investors for its upcoming IPO.
Offering specifics
IPO pricing and share sale details
The company has set a price band of ₹2,061 to ₹2,165 per share for the IPO. The offer is entirely an offer-for-sale of over 4.89 crore shares by its promoter, Prudential Corporation Holdings based in the UK. This means that the company will not receive any proceeds from this offering. The share sale is scheduled to close on Tuesday.
Market standing
ICICI Prudential AMC's market position and future prospects
Currently, ICICI Bank owns a 51% stake in the AMC while Prudential holds the remaining 49%. Once listed, ICICI Prudential AMC will join other asset managers such as HDFC AMC, UTI AMC, Aditya Birla Sun Life AMC, Shriram AMC and Nippon Life India Asset Management on India's stock exchanges. It will also be the fifth entity of the ICICI Group to be listed after ICICI Bank, ICICI Prudential Life, ICICI Lombard, and ICICI Securities.