ICICI Prudential AMC Mega IPO: India's Second-Biggest Financial Issue of the Year

ICICI Prudential AMC has filed a draft IPO paper with SEBI, seeking to raise funds through an offer-for-sale of 1.76 crore equity shares by its foreign partner, Prudential Corporation Holdings. The issue will not include a fresh issue component, and proceeds will go directly to the selling shareholder. The IPO is expected to be the second-largest in the financial services space and may be of interest to those following India's financial markets.

Title: ICICI Prudential AMC Files Draft IPO Paper with SEBI for Offer-for-Sale

ICICI Prudential AMC, one of India's largest asset management companies, has filed a draft IPO paper with the Securities and Exchange Board of India (SEBI) for an offer-for-sale of 1.76 crore equity shares by its foreign partner, Prudential Corporation Holdings. The IPO, which is expected to be the second-largest in the financial services space, aims to raise up to Rs 10,000 crore. The proceeds from the sale will go directly to the selling shareholder, with no capital infusion into ICICI Prudential AMC.

The IPO is structured entirely as an offer for sale (OFS), where Prudential Corporation Holdings will sell 10% of its stake in the AMC. The move is part of Prudential's plan to partially divest its holding in ICICI Prudential AMC, a joint venture between ICICI Bank and Prudential Corporation Holdings. The IPO is being managed by an unprecedented 18 merchant bankers, including global and domestic firms such as Citigroup, Morgan Stanley, and Axis Capital.

ICICI Prudential AMC, established in 1993, manages assets worth Rs 4,384 crore as of March 31, 2025. The company reported a turnover of Rs 4,980 crore and a profit after tax (PAT) of Rs 2,651 crore for the financial year 2025. The AMC's market share in the quarterly average assets under management (QAAUM) stood at 13% in March 2025, serving a customer base of 14.6 million across India.

The IPO is expected to make ICICI Prudential AMC the fifth company from the ICICI Group to be publicly listed, joining ICICI Bank, ICICI Prudential Life Insurance, ICICI Lombard General Insurance, and ICICI Securities. It will also become the fifth asset management firm to go public in India, following HDFC AMC, UTI AMC, Nippon Life India AMC, Aditya Birla Sun Life AMC, and Shriram AMC.

ICICI Bank, which holds a 51% stake in ICICI Prudential AMC, has approved the acquisition of an additional 2% stake in the AMC to maintain its majority shareholding. This move is intended to preserve the bank's majority control in case of stock-based compensation being granted by the AMC.

The broader market remained flat on the day of the filing, with the BSE Sensex hovering around 83,680 and the NSE Nifty 50 steady near 25,506. Investor sentiment turned cautious due to global cues, including U.S. President Donald Trump's remarks on imposing heavy tariffs on pharmaceutical imports.

References:
[1] https://m.economictimes.com/markets/ipos/fpos/icici-prudential-amc-files-for-ipo-entirely-an-offer-for-sale-by-prudential-corp/articleshow/122332036.cms
[2] https://upstox.com/news/market-news/ipo/icici-prudential-amc-files-draft-papers-with-sebi-for-ipo-consists-only-ofs-component/article-177775/
[3] https://www.dsij.in/dsijarticledetail/icici-prudential-amc-ipo-177-million-shares-offer-icici-bank-to-raise-stake-by-2-50579-1
[4] https://www.business-standard.com/content/press-releases-ani/sga-forays-into-ipo-communication-125071000841_1.html