The IPO market is buzzing with action this week. A major name from the financial sector is gearing up to enter the market. The company in focus here is ICICI Prudential Asset Management Company. The company is one of the country’s established fund houses. It will open its public issue on December 12. Before the subscription window begins, early grey market numbers and stake movements within the ICICI Group are already drawing attention.
Let’s take a look at what investors should know prior to the opening of the issue –
ICICI Prudential AMC IPO: What does the GMP trend indicate?
Even before the IPO opens, the ICICI Prudential AMC issue is trading at a premium of around Rs 105. At this level, the estimated listing price stands near Rs 2,270. This is nearly 5% above the issue price.
While it is important to note that GMP is not an official indicator and tends to fluctuate based on the market sentiment.
ICICI Prudential AMC IPO: Issue structure
The entire IPO is structured as an offer for sale. This means all the shares being sold belong to Prudential Corporation Holdings, the UK-based joint venture partner.
Since there is no new share issuance, the company itself will not receive funds from the IPO. Instead, the proceeds will go to the existing shareholder divesting its stake.
ICICI Prudential AMC IPO: Price band and timeline laid out for investors
The subscription window will run from December 12 to 16, with the anchor book opening a day earlier on December 11.
The company has set the price band between Rs 2,061-2,165 per share.
ICICI Prudential AMC IPO: ICICI Bank tightens its grip before the listing
Ahead of the IPO, ICICI Bank increased its stake in the asset management arm from 51% to 53%. This was done through a Rs 21.40 billion share purchase from Prudential Corporation Holdings.
ICICI Prudential AMC IPO: What it means for the larger ICICI Group
Once listed, ICICI Prudential AMC will become the fifth company from the ICICI Group to trade on the exchanges.
Other names include ICICI Bank, ICICI Prudential Life Insurance, ICICI Lombard, and the now-delisted ICICI Securities, which merged with the parent bank earlier this year.
Sector context and where the AMC stands
ICICI Prudential AMC will join a small set of already listed asset managers such as HDFC AMC, UTI AMC, Aditya Birla Sun Life AMC, Shriram AMC, and Nippon Life India AMC.
The fund house, incorporated in 1993, manages assets worth over Rs 48 billion as of September-end.