ICICI Prudential AMC files IPO papers with Sebi – ETCFO-OxBig News Network

New Delhi, ICICI Prudential Asset Management Company (AMC), a subsidiary of ICICI Bank, has filed preliminary papers with capital markets regulator Sebi to seek approval to launch an initial public offering (IPO).

The proposed IPO comprises an offer for sale (OFS) of 1.76 crore equity shares by promoter — UK-based Prudential Corporation Holdings, with no fresh issue component, according to the draft red herring prospectus (DRHP) filed on Tuesday.

Since the issue is entirely an OFS, the company will not receive any capital from the offer, and the proceeds will go to the selling shareholder.

At present, ICICI Bank holds 51 per cent stake in the asset management company, while the remaining 49 per cent is with its joint venture partner Prudential Corporation Holdings.

On June 28, ICICI Bank stated that its board approved an additional 2 per cent increase in stake in ICICI Prudential AMC.

This purchase will primarily be towards maintaining the bank’s majority shareholding in the event of the grant of stock-based compensation by the company, the private sector bank stated.

In February, the bank announced its intention to retain a majority holding in ICICI Prudential AMC even though its joint venture partner plans listing and partial divestment of its stake in the fund house.

This would be the fifth asset management firm to list on the exchanges, following HDFC AMC, UTI AMC, Aditya Birla Sun Life AMC, Shriram AMC and Nippon Life India Asset Management.

Moreover, this would also be the fifth entity to get listed from the ICICI Group after ICICI Bank, ICICI Prudential Life Insurance Company, ICICI Lombard General Insurance Company and ICICI Securities.

ICICI Prudential is involved in managing mutual funds, providing portfolio management services, managing alternative investment funds, and providing advisory services to offshore clients. In addition to its mutual fund business, the company has a growing alternatives business across PMS, AIF and offshore businesses.

The company’s IPO will be managed by 18 merchant bankers, including Citigroup Global Markets India Private Limited, Morgan Stanley India Company Private Limited, BofA Securities India Limited, Axis Capital, SBI Capital Markets and ICICI Securities. PTI

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