ICICI Prudential Asset IPO

ICICI Prudential Asset Management Company Limited IPO Strengths

Dominant Market Leadership

ICICI Prudential Asset Management Company Limited is a leader in the Indian asset management industry. It manages the largest assets in active mutual funds and equity schemes, holding a 13.3% and 13.4% market share, respectively. The company also leads in domestic non-corporate discretionary portfolio management services, solidifying its dominant position.

Extensive Investor Base

The company has India’s largest individual investor base in mutual fund assets under management. As of March 31, 2025, individual investors comprised 62.2% of its total mutual fund assets and 86.4% of its equity and equity-oriented schemes, demonstrating a robust and loyal customer base that contributes to stable, long-term assets.

Diversified Product Offerings

The company maintains a well-diversified product suite, managing 135 mutual fund schemes—the largest number in India. This diverse portfolio includes equity, debt, ETFs, and alternate investments like PMS and AIFs, enabling the company to cater to a wide range of customer needs and adapt to various market conditions.

Pan-India Distribution Network

ICICI Prudential has established a broad, multi-channel distribution network across India. Its network includes 264 offices, over 106,000 distributors, 209 national distributors, and 64 banks. The company also leverages digital platforms and the extensive branch network of its parent company, ICICI Bank, to reach a vast customer base.

Profitable Financial Performance

ICICI Prudential is a highly profitable asset management company, leading the industry in operating profit before tax for the Financial Year 2024 with a 21.2% market share. Its capital-efficient business model is reflected in a high return on equity of 82.8% for the financial year 2025, supported by consistent growth in assets and revenue.

Trusted Brand and Strong Culture

The company benefits from a well-established and trusted brand, bolstered by its strong parentage from ICICI Bank and Prudential. This reputation, combined with a culture of customer-centricity, innovation, and strong risk management, has helped it build investor trust and achieve its leading market position.

Experienced Management

ICICI Prudential is managed by a highly experienced and stable leadership and investment team. Senior managers and key personnel have been with the company for an average of 11 years, bringing extensive industry knowledge. The investment and research teams also have significant experience, ensuring a disciplined and professional approach to fund management.

More About ICICI Prudential Asset Management Company Limited

ICICI Prudential Asset Management Company Limited (ICICI Prudential AMC) is among the oldest and most trusted asset management companies in India, with over 30 years of industry presence. As of March 31, 2025, it ranked as the largest AMC in India by active mutual fund QAAUM, holding a 13.3% market share (Source: CRISIL Report). The company’s total mutual fund QAAUM stood at ₹8,794.1 billion, reflecting strong growth momentum.

• Equity & Equity-Oriented Schemes: Market share of 13.4%, the highest among AMCs in India.

• Equity-Oriented Hybrid Schemes: Market share of 25.3%, the largest in the industry.

• Individual Investors: MAAUM of ₹5,658.2 billion, representing the highest retail and HNI share at 13.8%.

Alternate Business

Beyond mutual funds, ICICI Prudential AMC has developed a strong alternates platform, comprising:

• Portfolio Management Services (PMS)

• Alternative Investment Funds (AIFs)

• Advisory Services to offshore clients

As of March 31, 2025, the company managed:

• ₹182.8 billion in discretionary PMS AUM

• ₹638.7 billion in alternates QAAUM

• ₹311.3 billion in advisory assets, including services to Eastspring Investments (Prudential plc’s asset management arm).

Profitability & Scale

ICICI Prudential AMC is also the most profitable AMC in India, with a 21.2% share of operating profit before tax in FY24. Its equity-heavy product mix contributes significantly to margins, with Equity and Equity-Oriented Schemes accounting for 55.5% of total QAAUM.

• Customer Base: 14.6 million investors across India.

• Distribution: 264 offices, 106,475 distributors, 209 national distributors, and 64 banks.

• Technology: Digital-first approach with 2.1 million app downloads, 93.6% digital purchase transactions, and strong social media presence.

Investment Products

The company manages 135 mutual fund schemes, including category leaders such as:

• ICICI Prudential Large Cap Fund

• ICICI Prudential Multi Asset Fund

• ICICI Prudential India Opportunities Fund

• ICICI Prudential Value Fund

• ICICI Prudential Asset Allocator Fund

Promoter Strength

Since 1998, ICICI Prudential AMC has operated as a joint venture between ICICI Bank Limited and Prudential Corporation Holdings Limited, combining strong domestic presence with global expertise

Industry Outlook

Market Scale & Growth Prospects

• The Indian asset management market is projected to expand from about USD 2.20 trillion in 2025 to approximately USD 4.52 trillion by 2030, registering a robust CAGR of 15.47%.

• Within this universe, the mutual funds market—valued at around USD 769.6 billion in 2024—is expected to nearly double to USD 1,585 billion by 2030, reflecting a CAGR of 12.8%.

• As of March 2025, industry AUM stood at approximately ₹65.7 trillion (USD 767.5 billion).

Growth Drivers

• Retail investor surge: Mutual fund folios have crossed 24 crore and AAUM is nearing ₹75 lakh crore (₹75 trillion) as of June 2025. This underscores increasing structured wealth creation via mutual funds.

• SIP momentum and financial inclusion: Monthly SIP inflows have surged, with financial discipline and rupee-cost averaging driving growth. Multi-fold increases in folios reflect deepening penetration.

• Digital transformation: Adoption of e-KYC, digital onboarding, and online platforms is reducing entry barriers, especially across smaller towns.

• Emergence of alternates: Private clients and institutional demand are fuelling PMS and AIF growth, with these segments expected to grow faster (alternatives projected at 16.85% CAGR).

• Policy and regulatory clarity: SEBI and IFSCA frameworks, along with GIFT City initiatives, are bolstering cross-border activity and tokenization pilots.

Product-Level Growth & Trends

Mutual Funds (Equity, Hybrid, ETFs, FoFs)

• Equity and hybrid schemes dominate, comprising 60–60% of total AUM, indicating investor preference for growth-linked and balanced products.

• ETFs and FoFs are the fastest growing segments within mutual funds, gaining traction due to low costs and thematic appeal.

PMS, AIFs & Advisory (Alternates)

• The PMS industry is entering a critical inflection point, propelled by investor sophistication, technological innovation, and stronger regulation.

• APMI targets reaching ₹25 lakh crore (~USD 300 billion) AUM in discretionary PMS within five years—an ambitious but telling growth signal.

• Currently, 70% of PMS capital is managed by non-institutional/alternative managers, highlighting a democratization trend in advisory

How Will ICICI Prudential Asset Management Company Limited Benefit

• A growing retail investor base and surge in SIP inflows will strengthen ICICI AMC’s recurring revenue streams.

• Rising demand for equity, hybrid, ETFs, and FoFs aligns with the firm’s wide product portfolio, ensuring scale and market share gains.

• Expansion in alternates (PMS, AIFs, advisory) offers new fee-generating avenues, supported by investor sophistication and institutional flows.

• Digital onboarding, e-KYC, and FinTech partnerships will lower acquisition costs and deepen penetration into tier-2 and tier-3 cities.

• Supportive SEBI and IFSCA frameworks enhance ICICI AMC’s ability to attract domestic and global investors.

• Strong brand equity and distribution reach position it to outpace industry growth and capture incremental assets.

Peer Group Comparison

Name of the Company	Revenue  (₹ in million)	Face value (₹)	EPS (₹) Basic	RoNW	NAV (₹)	P/E
ICICI	49,773.3	1.0	150.2	82.8%	199.2	[●]
Peer Groups
HDFC Asset Management Company Limited	34,984.4	5.0	115.2	32.4%	380.3	43.9
Nippon Life India Asset Management Limited	22,306.9	10.0	20.3	31.4%	66.4	39.4
UTI Asset Management Company Limited	18,510.9	10.0	57.4	16.3%	359.4	22.6
Aditya Birla Sun Life AMC Limited	16,847.8	5.0	32.3	27.0%	129.2	25.0

Key Strategies for ICICI Prudential Asset Management Company Limited

Focus on Risk-Calibrated Investment Performance

ICICI Prudential Asset Management Company Limited emphasises delivering consistent outperformance over the medium to long term. By leveraging disciplined processes, proprietary research, and robust risk frameworks, it aims to generate superior risk-adjusted returns while safeguarding investor interests, ensuring prudent portfolio management, and maintaining alignment with scheme mandates.

Expand Customer Base and Strengthen Distribution

The company is committed to expanding its customer base through deeper market penetration, stronger distributor relationships, and enhanced direct-to-consumer channels. Leveraging ICICI Bank’s branch network, digital platforms, and international expansions, it seeks to broaden reach, improve investor engagement, and drive sustained growth in both domestic and overseas markets.

Grow the Alternates Business

ICICI Prudential Asset Management Company Limited aims to scale its Alternates business through organic and inorganic opportunities. With leadership in discretionary PMS, it plans to integrate new funds, expand bespoke investment solutions across private credit and real estate, and strengthen high-net-worth client offerings, ensuring long-term leadership.

Diversify Product Portfolio for Customer Needs

The company remains focused on broadening its mutual fund portfolio in line with evolving investor preferences and regulatory changes. By prioritising systematic transactions, launching innovative products like the ICICI Prudential Quality Fund, and enhancing engagement with affluent investors, it ensures adaptability, relevance, and long-term value creation.

Leverage Technology and Digital Capabilities

ICICI Prudential Asset Management Company Limited continues investing in digital platforms, cloud-based systems, and advanced analytics to strengthen customer acquisition and retention. Collaborating with fintechs and digital distributors, it delivers personalised experiences, seamless transactions, and innovative solutions designed to reach younger, tech-savvy investors and enhance engagement.