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British insurer Prudential has sold its 4.5% stake in ICICI Prudential Asset Management Company (AMC) for approximately Rs. 4,900 crore, just a day before the asset manager’s highly anticipated $1.2 billion IPO opens for subscription.
The pre-IPO transaction comes as investor interest intensifies around what is expected to be one of the largest listings in India’s asset management space.
ICICI Prudential AMC is a joint venture between ICICI Bank, India’s second-largest private lender, and Prudential. ICICI Bank holds a 51% stake, while Prudential owns the remaining shares.
The asset manager will not issue new shares in the IPO; instead, the public offer will consist entirely of an offer for sale (OFS) by Prudential, which plans to divest 10% of its stake through the market.
Prudential’s stake sale through private placement reduces its holding ahead of the public issue and helps broaden the shareholder base before listing, scheduled for December 19.
The block deal attracted marquee domestic and global investors. Major buyers included:
Abu Dhabi Investment Authority (ADIA)
Family offices of Azim Premji and the late Rakesh Jhunjhunwala
Leading Indian insurers: SBI Life, HDFC Life, and Go Digit General Insurance
ICICI Bank itself also participated in the acquisition, purchasing shares worth approximately Rs. 2,140 crore.
The transaction, valued at around $545 million, is expected to reinforce long-term institutional support for the AMC as it approaches its market debut.
Since the IPO comprises only an OFS, ICICI Prudential AMC will not receive fresh capital. Instead, the proceeds from the sale of shares will go to Prudential.
The funds raised through private placement and the IPO will be used to pay the company's shareholders after necessary regulatory and board approvals.
The IPO will provide the investors with access to the largest and oldest mutual fund companies in India, having a varied and balanced investment portfolio and a strong retail investor base.
The pre-IPO stake sale is over, and now all eyes are on the public subscription process opening on Friday. The company’s size, profitability, and the increasing interest in the Indian asset management sector are the key reasons why market analysts expect strong demand from investors.
The listing of ICICI Prudential AMC on BSE and NSE is scheduled for December 19, marking an important milestone for the company and its promoters.
