ICICI Prudential Asset Management Company (ICICI AMC),a subsidiary of India’s second-largest private bank,ICICI Bank,has announced the price band for its highly anticipated initial public offering (IPO). The price band is set to range from ₹2,061 to ₹2,165 per share,with a face value of ₹1 per share. At the upper price band,the company’s valuation reaches a massive ₹1.07 lakh crore. The issue is scheduled to open for subscription to retail investors on December 12th.
Important IPO Dates and Details
ICICI AMC has clarified that the minimum bid lot for the IPO will be 6 shares. Subsequent bids will be accepted in multiples of 6 shares. The company’s initial public offering will close on December 16th. According to the Red Herring prospectus,bidding for anchor investors will open on December 11.
Investors will be issued refunds on December 18,and shares will be credited to their demat accounts on the same day. The company’s shares are expected to be listed on the exchanges on December 19.
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Sellers will receive all the funds
This IPO is entirely an OFS (Offer for Sale),which is a significant aspect. Under this OFS,the promoter company,UK-based Prudential Corporation Holdings,will sell 48.9 million equity shares. Since the company is not issuing any new shares,the proceeds from the IPO will not go directly to the company. The entire amount will go to the selling shareholder,Prudential Corporation Holdings.
Current Shareholding Pattern
ICICI Bank currently holds a 51% stake in ICICI AMC,and Prudential Corporation Holdings holds the remaining 49%. On June 28,the bank announced that its board had approved increasing its stake in the AMC by an additional 2%.
The bank clarified that if the company rewards employees with stock in the future,its stake may be slightly reduced. Therefore,it is purchasing an additional 2% stake in advance to maintain majority control. In February,the bank also clarified that it would retain a majority stake in the AMC even if Prudential seeks listing by selling a portion of its stake.
Fifth AMC to be Listed in India
ICICI AMC will be the fifth asset management company to be listed in the country,making it a new and strong option for investors in the market. Previously,HDFC AMC,UTI AMC,Aditya Birla Sun Life AMC,Shriram AMC,and Nippon Life India AMC have already been listed. ICICI Prudential AMC manages 143 mutual fund schemes,the most among domestic asset managers. It will also be the fifth company from the ICICI Group to be listed on the stock exchange. ICICI Bank,ICICI Prudential Life,ICICI Lombard,and ICICI Securities are already listed on the stock exchange.
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