ICICI Prudential AMC IPO gets Sebi nod, set for launch in December

Prudential to sell 10 percent stake in listing valued above Rs 1 trillion

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ICICI Prudential Asset Management Company (AMC) has secured approval from the Securities and Exchange Board of India (Sebi) for its initial public offering (IPO) estimated at around ₹10,000 crore, said people aware of the development.

 

The IPO of the country’s second-largest asset manager, which will be entirely an offer for sale (OFS) by UK-based Prudential Corporation Holdings (PCH), is likely to hit the market in the second half of December. The share sale is expected to take place at a valuation of over ₹1 trillion, putting it among the largest listings from the financial-services sector.

 

PCH, which currently owns 49 per cent of the fund house, will offload 10 per cent of its stake through the issue. ICICI Bank will continue to hold 51 per cent. The IPO will bring a windfall for the UK-based company as its acquisition cost for the 10 per cent stake was just ₹10 crore in 1998.

 

The offering will mark the fifth IPO from the ICICI group, and also the fifth by an AMC in India. Previous ICICI group listings included ICICI Bank, ICICI Prudential Life Insurance, ICICI Lombard General Insurance, and ICICI Securities, which is now delisted.

 

The IPO comes amid robust growth in India’s mutual fund (MF) industry, driven by a shift towards financial assets in household savings. Strong equity mutual fund performance since the Covid pandemic, and the rising popularity of systematic investment plans (SIPs) have fuelled investment flows. SIP inflows rose from ₹1 trillion in 2021-22 (FY22) to ₹2.9 trillion in FY25.

 

With continued inflows and a buoyant equity market, total assets under management (AUM) for mutual funds have more than doubled over four years to nearly ₹75 trillion.

 

ICICI Prudential MF has been among the beneficiaries of the industry's growth. Its AUM has grown nearly threefold in the past years to over ₹10 trillion. For FY25, ICICI Prudential AMC reported a net profit of ₹2,650 crore on revenue of ₹4,683 crore.

 

The IPO is being managed by a record 17 investment banks, including Citibank, ICICI Securities, Morgan Stanley, and Goldman Sachs.