Prudential sells ₹4,900 crore stake ahead of ICICI Prudential AMC IPO — Who bought the shares?

ICICI Prudential AMC IPO: British insurance company Prudential said on Thursday it has sold a 4.5% stake in ICICI Prudential Asset Management, a day ahead of the company's much-awaited IPO opening.

Prudential sold its 4.5% stake in ICICI Prudential AMC worth a massive ₹4,900 crore, ahead of the Indian fund manager's $1.2 billion IPO that opens on Friday.

The British fund house is a joint venture between ICICI Bank, India's second-largest private lender. ICICI Bank holds a 51% stake in the asset management company, while Prudential holds the rest.

With the transaction, Prudential has sold 1,2,355,671 to a number of investors and 98,85,170 shares to ICICI Bank, in accordance with an July 8 agreement.

The shares were priced at ₹ ₹2,165 per equity share, generating gross proceeds of over ₹48 billion, approximately $536 million.

“The net proceeds from this pre-IPO private placement, together with those from the potential IPO, are intended to be returned to Prudential shareholders, subject to regulatory and shareholder approvals where required,” Prudential said in a statement.

Abu Dhabi Investment Authority, the family offices of Azim Premji and Rakesh Jhunjhunwala, and Indian insurers including SBI Life, HDFC Life and Go Digit General Insurance bought the shares from Prudential. ICICI Bank also bought shares worth ₹21.40 billion.

ICICI Prudential Asset Management will not issue any new shares at the IPO where only Prudential will sell a 10% stake.

ICICI Prudential AMC IPO

ICICI Prudential Asset Management Company (AMC), a subsidiary of ICICI Bank, is set to launch its initial public offering (IPO) on 12 December.

The ICICI Prudential AMC IPO will open on 12 December and close for bidding on 16 December.

The ICICI Prudential AMC IPO is entirely an offer for sale of 4.90 crore shares totaling ₹10,602.65 crore.

ICICI Prudential AMC IPO allotment date is likely Wednesday, December 17, and the tentative IPO listing date is Friday, December 19. ICICI Prudential AMC shares will be listed on both the exchanges - BSE and NSE.

The company has fixed the price band of the IPO between ₹2,061 and ₹2,165 per share.

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.

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.