ICICI Prudential AMC Vs SBI AMC: Key Metrics Investors Should Know Before IPOs

India's Largest Asset Management Companies Eye Public Market Listings

ICICI Prudential AMC and SBI Funds Management, two of India's largest asset management companies, are making headlines as they explore public market listings. ICICI Prudential AMC has already secured the Securities and Exchange Board of India's approval for a Rs 10,000-crore IPO, while SBI AMC is still in the early stages of evaluating its listing strategy.

Market Expansion and Performance Comparison

• India's domestic mutual fund industry is expanding rapidly, driven by record SIP flows and strong retail participation.
• In terms of performance, SBI AMC has marginally outpaced ICICI AMC in shorter time frames, but ICICI AMC has demonstrated deeper consistency across its product suite over longer horizons.
• Data comparing fund performance shows that on the basis of one-year returns, 97% of ICICI AMC's AUM outperformed sector averages, compared with SBI AMC's 100%.

Financial Comparisons and Valuations

• Financial comparisons underline the scale and business model differences between the two asset management companies.
• Based on fiscal year 2024 metrics, ICICI AMC's implied market capitalisation is estimated between Rs 85,000 crore and Rs 1 lakh crore, while SBI AMC is expected to command a higher valuation in the range of Rs 1.30 lakh crore to Rs 1.39 lakh crore.

Revenue and Profitability

• ICICI AMC generates stronger revenue and profitability relative to its AUM, with its revenue standing at 55 basis points of AUM compared with SBI AMC's 33 basis points.
• Similarly, ICICI AMC's operating profit is 37 basis points of AUM, significantly higher than SBI AMC's 24 basis points.
• Its net profit also leads at 33 basis points, compared with SBI AMC's 25 basis points, reflecting stronger operating leverage and cost efficiency.

Operating Front and Market Share

• On the operating front, both companies delivered strong growth in fiscal 2024, with ICICI AMC reporting AUM growth of 41%, outpacing SBI AMC's 32%.
• However, both achieved identical equity AUM growth of 56%.
• As of the latest available data, SBI AMC leads at 16.9% in overall market share, while ICICI AMC holds 12.7%, consistent with SBI's position as India's largest mutual fund house by assets.

Key Takeaways: ICICI Prudential AMC and SBI Funds Management, two of India's largest asset management companies, are exploring public market listings. ICICI AMC has secured the necessary approvals for a Rs 10,000-crore IPO, while SBI AMC is still evaluating its listing strategy. The two companies have demonstrated varying levels of performance, revenue, and profitability, with ICICI AMC leading in these areas.