Now Reading: Prudential to sell 2% in ICICI Prudential AMC for Rs 3,190 crore
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Prudential to sell 2% in ICICI Prudential AMC for Rs 3,190 crore
Prudential to sell 2% in ICICI Prudential AMC for Rs 3,190 crore
Prudential Plc will sell up to 2% stake in ICICI Prudential Asset Management Co. through an open-market sale on 27 August, worth about Rs 3,190 crore. The sale will help the fund…
Prudential Plc will sell up to 2% stake in ICICI Prudential Asset Management Co. through an open-market sale on 27 August, worth about Rs 3,190 crore. The sale will help the fund manager meet minimum public-shareholding requirements within five years of its December 2025 IPO.
Prudential subsidiary Prudential Corp. Holdings Ltd will sell up to 9.89 million shares at Rs 2,998-3,158 apiece, a discount of 2-7% to Wednesday's closing price. Post-sale, promoter holding will drop from 87.60% to 85.60%. ICICI Bank holds 53% and Prudential Corp. 34.59% currently.
The stake sale is part of Prudential's broader shift, including its plan to form a new insurance venture with the Bharti group. Prudential has agreed to a 60-day lock-in after the sale. ICICI Securities and other institutions are placement agents.
Indian Opinion Analysis
The sale is driven by a regulatory deadline: ICICI Prudential AMC must have a minimum 15% public float by December 2025, five years from its IPO. Promoters currently hold 87.6%, far above the 75% cap. Prudential's divestment also aligns with its exit from promoter status at ICICI Prudential Life Insurance, where it holds 21.89% and must fall below 10% to start its Bharti venture. The Rs 10,603 crore IPO in December was an all-offer-for-sale by Prudential, which has been reducing its AMC stake from 49% pre-IPO. Watch for the 27 August sale to test demand at the offered discount, and for further reductions if the public float gap persists.
Source: livemint.com
This brief was synthesised by AI from the source linked above.
