A big IPO on the cards – ICICI Prudential AMC, is all set to hit the primary markets on December 12. The Rs 10,602-crore issue is entirely an offer for sale, with no issuance of fresh shares. Since it is an OFS, the company will not receive any proceeds from the offer.
Here are the key details you should know about the issue:
#1 ICICI Prudential AMC IPO size
The ICICI Prudential AMC issue is entirely an OFS, the promoter group Prudential Corporation will offload approximately 4.9 crore shares worth Rs 10,602.65 crore, with no fresh issue component. Currently, ICICI Bank holds 51% stake in the company, while the remaining 49% is held by UK-based Prudential Corporation Holdings.
On June 28, ICICI Bank stated that its board approved an additional 2% increase in stake in ICICI Prudential AMC. This purchase will primarily help maintain the bank’s majority shareholding in the event of stock-based compensation being granted by the company, the private-sector lender said.
#2 ICICI Prudential AMC IPO: Know the book running lead managers, registrar
Citi Group Global Markets India is managing the company’s public offering, while KFin Technologies is the registrar to the offer.
#3 ICICI Prudential AMC IPO: Price band and lot size
The asset management company’s shares are priced in a band of Rs 2,061–2,165 per share. In the unlisted market, ICICI Prudential’s shares are currently trading at Rs 2,265, indicating a premium of nearly 5% over the upper price band.
The minimum application size for retail investors is one lot of 6 shares. The lot size for small high-net-worth individuals is 16 lots, while large high-net-worth individuals can apply for a minimum of 77 lots.
As per SEBI regulations, 50% of the IPO is reserved for Qualified Institutional Buyers, 15% for Non-Institutional Investors, and the remaining 35% for Retail Individual Investors.
#4 ICICI Prudential AMC IPO: Key dates
The ICICI Prudential AMC IPO will open for bidding on December 12 and close on December 16. Anchor bidding will take place on December 11. The allotment of shares is expected to be finalised by December 17, and the company is likely to list on the exchanges by December 19.
#5 ICICI Prudential AMC IPO; Key risks
The company is vulnerable to general market risks, including adverse economic conditions such as a reduction in the value of assets under management, the risk of underperformance by investment products, increasing competition from other market participants, and a high reliance on the ICICI brand name. These factors pose challenges to the company’s financial condition and business operations.
Other risks include related-party transactions, reliance on third-party distributors, debt-repayment challenges, and the limited availability of suitable investment opportunities. Additionally, regulatory actions and legal uncertainties may affect the company’s financial performance and cash flows.
As per ICICI Prudential’s Red Herring Prospectus, criminal and tax proceedings amounting to Rs 163.8 crore are pending against the company. Its broader promoter group faces additional pending tax and criminal proceedings worth Rs 81,688.4 crore.