Rs 3 lakh cr ICICI Pru AMC IPO bids signal strong liquidity for quality issues: Gurmeet Chadha – News Air Insight

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A whopping Rs 3 lakh crore worth of share bids received by ICICI Prudential Asset Management Company during the three-day subscription window that closed on Tuesday is a testimony to the liquidity available for IPOs of companies with quality business credentials, opines Gurmeet Chadha, Managing Partner and CIO at Complete Circle Consultants.

“3 lac crore plus bids for a 10,500 cr IPO of ICICI Pru AMC… Shows the amount of domestic liquidity available for good IPOs n quality businesses,” Chadha said in a tweet.

Notwithstanding the currently subdued market sentiments, he believes there is a long runway for capital market companies from exchanges and depositories to asset management companies (AMCs) and digital broking firms.
“Long runway for capital market plays – exchange, depository, wealth mgmt , AMCs and digital broking cum platform plays…,” he added.The initial public offering of ICICI Prudential AMC concluded with shares getting subscribed 39.17 times, led by the qualified institutional investors (QIBs). Their share bids stood at 123.87 times (+115 crore) of the quota of 93,04,869 equity shares reserved for them. The non-institutional investors’ portion (NII) was booked at 22.04, while the retail investors’ portion got fully subscribed at 2.53 times.

The Rs 10,600 crore IPO received 55 lakh applications, which is only next to 65 lakh applications received by LG Electronics India among other similar-sized IPOs. Tata Capital received 23.6 lakhs, while HDFC Bank’s NBFC arm HDB Financial Services received 43 lakh applications.

Also Read: ICICI Prudential AMC IPO: How to check allotment status, GMP and what to expect from listing

ICICI Prudential AMC raised Rs 3,022 crore from anchor investors – a pool of 74 anchor and 26 pre-IPO investors list with marquee names such as Temasek, GIC, Abu Dhabi Investment Authority, Lunate, Fidelity, Norges and JP Morgan Investment manager, among others.Renowned market investors and their funds, like the Estate of Rakesh Jhunjhunwala, Prashant Jain-led 3PIM, Manish Chokhani, and Madhu Kela, were also investors in the issue. The marquee family office investors include Premji, HCL, Hero Family and Times Group.

Also Read: Zepto IPO, Swiggy QIP bad news for Eternal investors? Jefferies analysts decode

ICICI Prudential AMC IPO GMP

The company’s shares were commanding a grey market premium of Rs 350 against the upper price band of Rs 2,165. The estimated listing price is Rs 2,515, which is a 16% premium.

(Disclaimer: The recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times.)



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