ICICI Prudential Asset Management Company's shares made a strong market debut, listing at a premium of over 20% above the issue price.
Shares of ICICI Prudential Asset Management Company made an impressive entry into the secondary market on Friday, December 19, rewarding IPO investors with healthy listing gains amid strong demand. The stock debuted at Rs 2,600 on the National Stock Exchange (NSE), reflecting a premium of 20.09% over its issue price of Rs 2,165. On the BSE, ICICI Prudential AMC shares opened at Rs 2,606.2, up 20.38% from the IPO price.
IPO investors pocket Rs 15,600 per lot on listing
The strong debut translated into solid gains for retail investors who received allotment in the public issue. With one lot consisting of six shares, investors made a notional gain of Rs 15,600 per lot at the NSE listing price.
Rs 10,602-crore IPO was a pure OFS
The public issue, worth Rs 10,602.65 crore, was entirely an offer for sale (OFS) of 4.90 crore equity shares by promoter Prudential Corporation Holdings. Since there was no fresh issue component, the company will not receive any funds from the IPO.
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The price band for the issue was fixed at Rs 2,061 to Rs 2,165 per share.
In its red herring prospectus (RHP), ICICI Prudential AMC said the stock market listing would help enhance its visibility and brand image, while also creating a public market for its equity shares in India.
IPO sees strong demand across investor categories
The IPO witnessed robust interest from investors, with the issue getting subscribed 39.17 times overall. According to NSE data, bids were received for 1,37,14,89,456 shares against 3,50,15,691 shares on offer.
Demand was particularly strong in the qualified institutional buyers (QIB) segment, which was subscribed 123.87 times. QIBs bid for 1,15,25,59,968 shares compared to 93,04,869 shares reserved.
The non-institutional investors (NII) category was booked 22.04 times, with bids for 15,37,89,816 shares against an allocation of 69,78,652 shares.
Retail individual investors (RIIs) also showed interest, subscribing their portion 2.53 times by applying for 4,12,62,762 shares versus 1,62,83,521 shares on offer.
Anchor investors show strong confidence
Ahead of the IPO, ICICI Prudential AMC raised Rs 3,021.8 crore through its anchor book from 149 institutional investors. The anchor list featured several global and domestic heavyweights, including the Government of Singapore, Norges Bank, BlackRock, Fidelity, Abu Dhabi Investment Authority, Capital World, JP Morgan Investment Management, Wellington, Aberdeen, Goldman Sachs, LIC and leading domestic mutual funds such as SBI MF, HDFC MF, Axis MF, Nippon India MF and Aditya Birla Sun Life MF.
