ICICI Pru AMC's upcoming IPO to test group’s listing luck

Subscribe to enjoy similar stories. As India’s capital markets expand and household savings accelerate their shift toward financial products, asset management companies are entering a new phase of growth, powered by rising retail participation and record flows into systematic investment plans (SIPs). Against this backdrop, ICICI Prudential Asset Management Co.

(ICICI Prudential AMC)—the country’s largest active equity fund manager—is set to make its stock market debut this week. The fund house, among India’s oldest with a 30-year operating history, benefits from the dual parentage of ICICI Bank and Prudential Corporation Holdings. The ₹10,600-crore issue is entirely an offer for sale (OFS) comprising 48.79 million shares and will open on Friday with a price band of ₹2,061–2,165 and close on Tuesday.

While Prudential is divesting more than initially proposed, ICICI Bank recently raised its stake by 2%, ensuring it retains 53% ownership post-listing. This gives the lender enough headroom to remain the asset management company's (AMC) majority shareholder even after dilution from the newly-created Esop pool. “When the IPO was first signalled back in February, ICICI Bank had already indicated its intent to retain majority ownership.

Even at a 51% stake, they remain the controlling shareholder," Naveen Kumar Agarwal, chief financial officer at ICICI Prudential AMC, told Mint. “We have also created a new Esop pool, which will naturally lead to some dilution for existing shareholders. By increasing their stake to 53%, ICICI Bank is simply ensuring that even after the Esop-related dilution in the near future they continue to remain the majority owner." The AMC’s public offer arrives against the backdrop of the ICICI Group’s