ICICI Prudential AMC IPO Opens as Markets Eye Fed Meet

India’s equity market is heading into a busy week, with one of the largest public issues of the year set to hit the Street. ICICI Prudential Asset Management Company has released details of its upcoming IPO, and the announcement comes at a time when traders are preparing for several domestic triggers and a crucial US Federal Reserve policy meeting.

ICICI Prudential AMC Finalises IPO Price Band

ICICI Prudential AMC IPO has set the price band at ₹2,061 to ₹2,165 per share for its ₹10,603 crore public issue. The offer will open to investors on December 12 and close on December 16, while anchor investors will participate a day earlier on December 11.

The IPO is structured entirely as an offer for sale, with promoter Prudential Corporation Holdings Limited planning to divest 48,972,994 shares. A minimum application will require 6 shares, with bids allowed in multiples thereafter.

As of FY25, the company remains the country’s one of the largest asset managers by active quarterly average AUM. It holds a 13.3% share of the industry and manages assets of roughly ₹8.8 lakh crore. CRISIL data reinforces its leadership in the equity category as well, where the AMC commands a 13.4% share, along with the top spot in hybrid-equity offerings.

Financial performance has been equally strong. Over FY23 to FY25, profit after tax has expanded at a 32.2% CAGR, rising to ₹2,650.6 crore. Profit before tax, also growing at nearly 32% over the same period, reached ₹3,240 crore, placing the firm at the top of the industry based on profitability.

The issue will be managed by an extensive list of book running lead managers, including Citigroup Global Markets India, ICICI Securities, Morgan Stanley India, Goldman Sachs India, BofA Securities, Avendus Capital, Axis Capital, BNP Paribas, and HDFC Bank. KFin Technologies will serve as registrar.

Markets Enter the Week on a Cautious Undertone

The Nifty finished the previous week largely unchanged, ending at 26,186.45. A strong move on Friday, however, helped restore positive sentiment. Analysts noted that the index continues to hold its upward structure. Some analysts say that a move through 26,350 could open the way toward 26,600, supported by healthy momentum indicators such as the daily RSI near 63.

Key Factors That May Influence Trading

• Federal Reserve Policy Decision

Global market attention is centred on the December 9 FOMC meeting. A potential 25 basis-point rate cut is being debated, and investors will closely track the Fed’s commentary on the economic outlook, labour market conditions and rate expectations for 2025.

• US Market Cues

Major US indices closed higher on Friday after September data showed steady consumer spending and inflation readings that aligned with forecasts. The Nasdaq ended at 23,578.10, the Dow at 47,955 and the S&P 500 at 6,870.40, offering a supportive global setup for the start of the week.

• Heavy IPO Calendar

The primary market is expected to remain active, with five mainboard IPOs and seven SME offerings scheduled to open. The combined fundraising target for the week stands at ₹13,807 crore. Apart from ICICI Prudential AMC, issues from Corona Remedies, Wakefit Innovations, Park Medi World and Nephrocare Health Services will also enter the market.

• Flows From FPIs and DIIs

Foreign investors sold equities worth around ₹439 crore on Friday, while domestic institutions recorded net purchases of ₹4,189 crore. Their trading behaviour will remain an important market cue.

• Rupee Movement

The rupee ended the week at 89.95 per dollar, weakening after the RBI’s policy rate cut. The central bank’s ₹1 lakh crore government bond purchase plan and a USD 5 billion swap are expected to stabilise liquidity conditions.

With a large IPO, a critical global policy decision and an active primary market, investors are preparing for a week filled with significant market-moving developments.

Sources

Economic Times1
Economic Times2