Another large IPO is planned for the current year. Prudential Corp of UK, ICICI Bank's joint venture partner in ICICI Prudential Asset Management, is selling a 10% stake in the company through an initial public offering valued at around Rs 10,000 crore. On Tuesday, the AMC filed the papers with Sebi, according to ICICI Bank, the majority owner of the fund house.
This year has already seen two IPOs worth more than Rs 5,000 crore: HDB Financial Services, an arm of HDFC Bank, completed its 12,500-crore offering last month. And in February, Hexaware Tech raised nearly Rs 8,760 crore.
Key Highlights
- Prudential plans ₹10,000 Cr IPO via offer-for-sale of 10% stake in ICICI Prudential AMC.
- The IPO could value the AMC at about $12 billion; ICICI Bank to buy additional 2%.
ICICI Prudential AMC is the manager of ICICI Prudential Mutual Fund (I-Pru MF), which currently manages nearly Rs 9.5 lakh crore in investor assets (average assets under management for April-June quarter, according to AMFI data). The fund house is majority-owned by ICICI Bank (51%), with the UK-based financial major holding the remaining 49%.
The Indian banking giant said on Wednesday that it would keep its 51% stake in the fund house. ICICI Bank has reached an agreement with Prudential Corp to buy up to 2% of I-Pru MF before it goes public through an IPO, the bank announced. Currently, three more Indian fund houses are listed. HDFC Mutual Fund had an AAUM of Rs 8.3 lakh crore in the previous quarter, followed by Nippon India Mutual Fund (Rs 6.1 lakh crore) and UTI Mutual Fund (Rs 3.6 lakh crore). According to BSE data, the market value of HDFC MF is nearly Rs 1.1 lakh crore, Nippon India's is nearly Rs 50,900 crore, and UTI MF is Rs 17,185 crore.
Also Read: Mutual Fund SIPs Maintain Momentum, Hits Rs 26,688 Crore in May: AMFI
Canara Robeco MF, which had an AAUM of approximately Rs 1.1 lakh crore last quarter, has filed to go public via an IPO. Promoters of several other fund houses have expressed their desire to go public, but have yet to file IPO papers with market regulator Sebi.
