Shares of asset management companies (AMCs) witnessed a strong rally on July 10, 2025, following the release of encouraging June mutual fund inflow data by AMFI and the IPO filing by ICICI Prudential AMC. The two major triggers—a sharp rebound in equity fund inflows and a large upcoming public offering—lifted market sentiment in the asset management space.

Equity Mutual Fund Inflows Surge 24% in June

As per data released by the Association of Mutual Funds in India (AMFI) on July 9, net inflows into equity-oriented mutual funds in June 2025 stood at ₹23,587 crore, a 24% increase from ₹19,013 crore in May. This marks the first month of positive growth after five consecutive months of decline in equity inflows:

Decline Trend in Previous Months:

• December 2024: ₹41,156 crore

• January 2025: ₹39,688 crore

• February 2025: ₹29,303 crore

• March 2025: ₹25,082 crore

• April 2025: ₹24,269 crore

The turnaround in June indicates a revival in investor confidence amid stable market conditions and a shift in sentiment towards equity as an asset class.

On the flip side, debt mutual funds saw a net outflow of ₹1,711 crore, though this was a sharp improvement compared to ₹15,908 crore of outflows in May, hinting at stabilisation in fixed-income allocations.

AMC Stocks React Positively on July 10

The AMFI data triggered a rally across listed AMCs on July 10:

• UTI AMC surged 6.2% to trade at ₹1,428

• Aditya Birla Sun Life AMC gained 4%, reaching ₹850

• Nippon Life India Asset Management rose nearly 2% to ₹815.8

• HDFC AMC was up 1.5%, trading at ₹5,217.5

The gains came as investor optimism returned to the mutual fund industry, especially equity-focused AMCs, thanks to rising net flows and improving investor participation.

ICICI Prudential AMC Files for ₹10,000 Cr IPO

Adding to the bullish sentiment was the announcement that ICICI Prudential AMC has filed draft red herring prospectus (DRHP) for a ₹10,000 crore initial public offering (IPO).

The IPO is entirely an Offer for Sale (OFS) involving 1.76 crore equity shares by Prudential Corporation Holdings (UK), the joint venture partner. There is no fresh equity issuance, meaning the entire proceeds will go to the selling shareholder, and ICICI Prudential AMC will not receive any capital infusion.

The company is one of India’s leading asset managers, operating across:

• Mutual funds

• Portfolio management services (PMS)

• Alternative investment funds (AIF)

• Offshore advisory and investment mandates

Its growing alternatives platform and established MF business place it among the top players in India's fast-growing investment ecosystem.

The IPO will be managed by 18 merchant bankers, including:

• Citigroup Global Markets India

• Morgan Stanley India

• BofA Securities

• Axis Capital

• SBI Capital Markets

• ICICI Securities

This IPO is expected to be one of the largest in the Indian AMC sector and could significantly unlock value for investors and improve visibility for the firm.

Conclusion

The rebound in mutual fund equity inflows after five months and the upcoming IPO of ICICI Prudential AMC have rejuvenated investor interest in the AMC sector. With rising retail and SIP participation, industry dynamics appear strong going into H2 FY26. The surge in AMC stock prices reflects optimism about both fund flow sustainability and the valuation rerating potential of key players like ICICI AMC.

The Upcoming IPOs in this week and coming weeks are Monika Alcobev, NSDL, Anthem Biosciences, Spunweb Nonwoven.

The Current active IPO are Smartworks Coworking, Asston Pharmaceuticals, CFF Fluid Control, Glen Industries.

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