ICICI Pru AMC IPO to test group’s listing luck

As India's capital markets expand and household savings accelerate their shift toward financial products, asset management companies are entering a new phase of growth, powered by rising retail participation and record flows into systematic investment plans (SIPs).

- Mayur Bhalerao

Against this backdrop, ICICI Prudential Asset Management Co. (ICICI Prudential AMC)-the country's largest active equity fund manager-is set to make its stock market debut this week.The fund house, among India's oldest with a 30-year operating history, benefits from the dual parentage of ICICI Bank and Prudential Corporation Holdings. The ₹10,600-crore issue is entirely an offer-for-sale (OFS) comprising 48.79 million shares and will open on Friday with a price band of ₹2,061-₹2,165 and close on Tuesday.

While Prudential is selling more than initially proposed, ICICI Bank recently raised its stake by 2%, ensuring it retains 53% ownership post-listing.

"When the IPO (initial public offering) was first signalled back in February, ICICI Bank had already indicated its intent to retain majority ownership. Even at a 51% stake, they remain the controlling shareholder," said Naveen Kumar Agarwal, chief financial officer at ICICI Prudential AMC. "We have also created a new Esop (employee stock ownership plan) pool, which will naturally lead to some dilution for exist-