ICICI Prudential Asset Management Company has filed its Draft Red Herring Prospectus (DRHP) with SEBI for an initial public offering (IPO), setting the stage for what could be one of the largest public offerings in the financial services sector this year.
What will happen to ICICI Bank holdings?
Prudential has entered into an agreement with ICICI Bank to divest up to 2 per cent of its equity stake to the bank before the IPO, subject to final approvals and market conditions.
ICICI Bank currently owns 51 per cent of the AMC and the remaining 49 per cent is held by UK-based Prudential Plc. The banking major has reaffirmed its intention to maintain majority control. During a board meeting on June 27, ICICI Bank had approved the purchase of up to an additional 2 per cent stake to offset potential dilution from stock-based compensation plans and preserve its controlling interest.
ICICI Bank clarified that the proposed transaction will not alter its majority stake in the AMC and the IPO-bound firm will continue to be a subsidiary of the Bank. In a regulatory filing today, ICICI Bank said, “Subsequent to the proposed transaction there will not be any change in classification of the company (i.e. it will continue to be a subsidiary of the Bank). This purchase will primarily be towards maintaining the Bank’s majority shareholding in the event of grant of stock-based compensation by the company.”
IPO details
The IPO will be a pure offer-for-sale (OFS) of up to 17.7 million shares by Prudential Corporation Holdings Limited, the UK-based joint venture partner. As there is no fresh issue involved, all proceeds from the offering will go directly to the selling shareholder, and ICICI Prudential AMC will receive no capital infusion from the issue.
ICICI Prudential Asset Management Company is a joint venture between ICICI Bank and the UK-based Prudential Plc.
This potential listing marks another milestone for the ICICI Group, with ICICI Prudential AMC poised to become the fifth group entity to list after ICICI Bank, ICICI Prudential Life Insurance, ICICI Lombard General Insurance, and ICICI Securities. It would also become the sixth asset management company to debut on Indian stock exchanges, following the likes of HDFC AMC and Nippon Life India AMC.
As per the DRHP filed on July 8, Prudential Plc is looking to offload up to 10 per cent of its stake in the company through the IPO. Bloomberg reported that the public issue could raise up to Rs 10,000 crore (approximately $1.2 billion), valuing the AMC at around $12 billion.
ICICI Prudential Asset Management Company had total assets of Rs 43.84 billion as on March 31, 2025. It had recorded a turnover of Rs 49.80 billion for FY2025 and a PAT of Rs 26.51 billion for the same period.
Shares of ICICI Bank were down 0.72 per cent at 10:45 am today at a trading price of Rs 1,431.70.