SEBI Grants Final Approval for ICICI Pru AMC IPO:-
ICICI PDL AMC’s IPO has just received final approval from SEBI. Meaning we will see the IPO coming soon. This IPO is coming in the month of December. The good thing is that we are also getting to see shareholder quota in this IPO. Meaning, the IPO issue here is big. Along with this, we are getting the additional benefit of shareholder quota here. Now what are its benefits going to be?
Mandatory IPO Due to Stake Reduction Rule:-
The news has come out that the IPO of ICICI Psalm AMC has got approval. Now its DRHP, Draft Trade Hearing Prospectus, was filed by the company in July 2025 itself and due to SEBI regulations, they had to reduce their stake below 75%, so bringing IPO was a mandatory thing for them, but here the problem arises regarding its approval. Now let us understand how the problem has arisen. So the main reason behind the IPO not getting approval is that some deficiencies were seen in the Draft Trade Hearing Prospectus (DRHP) filed by the company with SEBI. Basically, whenever a company files its DRHP Draft Trade Hearing Prospectus, first of all, complete details of the company have to be given there. Along with this, the financials of the company also have to be shown. And what cases are the company facing? What cases are pending against the company? It is necessary to disclose all the things like which disputes are going on with which companies and which cooperations are going on. But as soon as it went for IPO approval, its red hearing prospectus went.
Overview of ICICI Pru AMC’s Business:-
So there’s a company called Atlas Wealth. He made allegations against the company. Meaning, a complaint was filed with SEBI that they have not shown their trademark dispute in their DRHP. Due to which there were a lot of problems in getting the approval and by the time the approval came, the month of November had arrived but finally the approval has been received. Now if we about our IPO issue, it is being said that the IPO issue will be of Rs 10,000 crore. Look, the IPO issue is a very big issue in itself. Meaning, your chances of allotment are increasing here. But along with this, we can also see the share holder quota here. Now this IPO of Rs 10,000 crore is going to be entirely OFS i.e. Offer for Sale. Where the promoters of the company are going to offer for sale 1.77 crore equity shares in this IPO. Currently, if we about the share holding of the company, 100% share holding is currently with the promoters of the company in pre-IPO. Where 51% share holding is with ICICI Bank and the remaining 49% is with Prudential Corporation Holding.
Strong Financial Performance:-
About the rest of the company’s business, the company is an asset management company. If we about its recent quarterly assets under management, then according to that the company becomes the largest asset management company in India. Look, the company also provides AIF PMS service to its clients. Provides portfolio management services. The company also has around 135 mutual funds. Where we can see a lot of debt mutual funds and hybrid mutual funds along with equity. Currently, ICIC AMC has more than 30 years of fund management experience. About their revenue, then 94% of their revenue comes in the form of management fees. Because when these funds are managed, a management fee is deducted due to which their revenue becomes that of the company. Since we are ing about financials, let us first understand their financials. Look, we are seeing quite explosive financials of the company. In March 2023, the company had a revenue of Rs 2800 crore. Where it reached approximately Rs 5000 crore within 2 years. Meaning, strong growth in revenue is being seen here.
Expected Valuation and Pricing Insight:-
At the same time, if we about PAT, profit after tax, then this PAT of Rs 1515 was being done in 2023. Where by 25, the company is generating revenue of Rs 2650 crores and over the time the net worth of the company has also increased and the good thing is that the reserve and surplus of the company is also growing at a good pace. So overall the financials of the company are growing. Besides, the asset management sector in India is growing very fast. So even if we look at it in the long term, the AMC business i.e. ICICI Potential AMC can deliver good returns to the investors. Now let us come to the valuations and after that we will understand the entire matter of shareholder quota here. Ok? This is an IPO of Rs 10,000 crore. About the expected valuation, its valuation is said to be 12 to 12.5 billion dollars. Meaning, if we look at the Indian company worth approximately Rs 1 lakh crore in India, then that is what happens here.
How Allotment Works Under Shareholder Quota:-
But the problem is that the valuation of Rs 1 lakh crore that they are asking for seems to be very expensive. Currently, whenever a company expects a valuation of a particular amount, the IPO does not come above that valuation. The price band is generally low. So somewhere, this high valuation that we are being told about, the IPO is not going to come at such a high valuation. The IPO will come only at a cheap valuation and the cheaper the valuation, the better it will be for the investors so that the listing gains can be good. But as an optimist, we will see that if we optimize our allotment chances as well as profits, then if the GMP of any IPO is around 15 to 20% then that is the best thing because there is not much crowd here and there are chances of allotment also if it is a big issue, but if the GMP of any IPO goes above 50% then since the market has fallen in the last one and a half years, we are not seeing this thing. Ok? Meaning GMP above 50% is not seen, GMP above 100% is not seen. Meaning, if the GMP is big and there are more applications, then your chances of allotment reduce. So you should understand that brother, if there is a GMP of 15 to 20%, where you can use your shareholder quota and also apply in retail, then your chances of allotment will increase and you will also get a decent profit. Ok? Now let us come to its shareholder quota.
Using One Demat for Both Retail & Shareholder Applications:-
See, generally in any IPO, a share holder quota of 10% is kept for the shareholders. Let us assume that the company has to first file DRHP for approval. When the approval is received and the IPO is to be launched, you have to file RHP about 7 to 8 days before the IPO date. You mean the company, RHP means Red Hearing Prospectus. Currently, on the day the Red Hearing Prospectus is filed, it is checked in which demat accounts the shares of the company’s parent company are present. What is going on in India right now? T+1 settlement. T+1 settlement means that if you buy a share today, then that share will reflect in your demat account tomorrow. So it is a clear thing that if RHP is filed today, then you should have taken the shares of the parent company yesterday, so overall you have to take the shares of the parent company in advance because you do not know when the RHP will be filed, so you have to take the shares of the parent company in advance.
Final Thoughts:-
Earlier there used to be Prota in Big HAI. Now the lottery has been drawn for him also. So the lottery of Big HAI has been removed but there is still pro date in Retail Gota. Meaning, the more lots you apply, the greater are your chances of making a profit. Generally you apply for 13 lots which means you hit the maximum limit. Meaning your amount is approximately up to 2 lakhs, so there is a limit of up to 2 lakhs for applying in retail quota sorry share holder quota. So you should hit the maximum so that your chances of allotment will be maximized. This means that if there is no oversubscription of more than 13x in the shareholder quota, then your allotment is confirmed. Meaning you will get at least one lot. If there is less than 13X oversubscription in the shareholder quota, you can also get multiple lots.