ICICI Prudential AMC IPO

And why it hits your wallet?

ICICI Prudential AMC — India’s second largest mutual fund house — is heading for an IPO with ₹6.13L Cr AUM, 55% in equity, and a 53% net margin. A lean, high-margin business that's hard to ignore.

ICICI Pru AMC:

Equity Drives Profits

As of Q4 FY25, ICICI Pru AMC managed an average AUM of ₹6.13 lakh crore, with 55% in equity schemes. Why does that matter? Because equity funds earn the highest fees — up to 2% for regular plans — making ICICI Pru one of the most profitable AMCs in India.

What Are the Markets Saying?

ICICI Pru AMC: A 53% Margin Cash Machine

In FY25 alone, it reported ₹4,977 crore in revenue and a massive ₹2,651 crore in net profit — a net margin of over 53%. With negligible capital expenditure and near-zero working capital needs, this is a true cash machine.

Retail investors are the engine of this growth — ICICI Pru draws the largest retail AUM among all AMCs, and 82% of its equity AUM is actively managed (read: higher fees, better margins). Plus, it's expanding aggressively in ‘B30’ cities — regions beyond the top 30 cities, where mutual fund penetration is still low.

SEBI Rules & Passive Boom Challenge AMC Models

But challenges loom. Passive investing — with wafer-thin fees of just 5–15 bps — now accounts for ₹10+ lakh crore across the industry, about 20% of total AUM. And with SEBI tightening fee caps and linking them to performance, the business model is evolving fast.

It’s not just an IPO — it’s a front row seat to India’s retail investing revolution

Despite headwinds from passive investing and regulatory tightening, the long-term opportunity remains massive for ICICI Pru AMC. Out of over 70 crore PAN holders in India, only 3.8 crore individuals — just about 5% — currently invest in mutual funds. This indicates that mutual fund penetration is still in its early stages. With rising financial literacy, increasing digital access, and growing investor awareness, ICICI Pru is well-positioned to tap into this underpenetrated market. As one of India’s largest and most trusted AMCs, it stands to benefit significantly from the next wave of retail participation in financial markets.

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