The Indian primary market is set to welcome a new heavyweight as ICICI Prudential Asset Management Company (AMC) gears up for its much-anticipated initial public offering (IPO). The public issue of this leading asset manager, a subsidiary of ICICI Bank, will open for subscription on Friday, December 12.
IPO Dates, Price Band, and Lot Size
According to the company's red herring prospectus, the bidding window for the mainboard IPO will remain open until December 16. The price band for the equity shares has been fixed between ₹2,061 and ₹2,165 per share, with each share having a face value of ₹1. For retail and other investors, the minimum application size will be for 6 shares, with bids allowed in multiples of 6 thereafter. The bidding process for anchor investors is scheduled a day before the public opening, on December 11.
A Pure Offer for Sale: Structure and Shareholding
This IPO is structured entirely as an Offer for Sale (OFS) of 4.89 crore shares by its promoter, the UK-based Prudential Corporation Holdings. Since it is a pure OFS, the company will not issue any fresh shares and consequently will not receive any proceeds from the issue; all funds will go to the selling shareholder. The current shareholding pattern shows that ICICI Bank owns 51% of the asset management company, while Prudential Corporation Holdings holds the remaining 49%.
In a related move, ICICI Bank's board had approved in June the purchase of an additional 2% stake in the AMC. The bank stated this step was to ensure it maintains its majority ownership, especially if the AMC issues stock-based compensation to employees in the future. This intent to retain control was first confirmed in February when the bank announced its plans even as its joint venture partner moved towards listing.
Market Significance and Listing Milestones
Upon successful listing, ICICI Prudential AMC will become the fifth asset management company to be listed on Indian stock exchanges. It will join the ranks of peers like HDFC AMC, UTI AMC, Aditya Birla Sun Life AMC, Shriram AMC, and Nippon Life India Asset Management. Furthermore, this listing will mark the fifth entity from the ICICI Group to go public, following ICICI Bank, ICICI Prudential Life Insurance, ICICI Lombard General Insurance, and ICICI Securities.
Disclaimer: This news article is for informational and educational purposes only. Readers are advised to consult with a certified investment advisor before making any financial decisions.
