ICICI Prudential Asset Management Company – a 51:49 joint venture between ICICI Bank and UK-based Prudential PLC – is all set to file its Draft Red Herring Prospectus (DRHP) to raise up to Rs 10,000 crore through an offer for sale (OFS) within the next few days, according to people close to the development. It will become the sixth mutual fund house to list at the bourses.
According to sources, Prudential plans to raise the amount by offloading part of its stake in the joint venture. Last month, a Bloomberg had reported said the company has hired a record 17 lead managers for the offering, which may value the firm at about $12 billion.
ICICI Prudential AMC did respond to messages and calls on the same.
The company is the country’s second-largest mutual fund manager by assets with Rs 9.53 lakh crore of assets under management as of May 31 after SBI Mutual Fund.
Currently, five mutual fund companies are listed on the Indian bourses including HDFC AMC , Nippon Life India AMC, UTI AMC, Shriram AMC and Aditya Birla Sun Life AMC. This will also be the second-largest IPO this year after the Rs 12,500 crore IPO of HDB Financial Services listed on Wednesday.
In February, the British JV partner had said that it is evaluating a potential listing of ICICI Prudential Asset Management Company Limited involving the partial divestment of its shares, subject to market conditions, requisite approvals and other considerations.
It had said: “It is intended that following the completion of such a divestment, the net proceeds would be returned to shareholders it had said. India is a strategically important market for Prudential with compelling growth prospects. We will continue to explore opportunities to grow our businesses in the market.
After that, a regulatory filing by ICICI Bank had acknowledged the announcement and said in a regulatory filing, “The bank intends to retain its majority shareholding in ICICI Prudential Asset Management Company ensuring long-term commitment.”
Recently, the Bank’s board approved purchase of up to 2% additional shareholding in ICICI Prudential Asset Management Company. “This purchase will primarily be towards maintaining the bank’s majority shareholding in the event of grant of stock-based compensation by the company,” the disclosure said.