Prudential Plc mulls listing of ICICI Prudential Asset Management Company

Through the IPO, the London-headquartered financial major plans to divest some of its 49 per cent stake. Shares of Prudential rallied over 6 per cent after the announcement on London Stock Exchange

Prudential Plc is considering the listing of ICICI Prudential Asset Management Company (AMC), India’s second-largest mutual fund (MF) with assets of over ~9 trillion.

 

Through the IPO, the London-headquartered financial major plans to divest some of its 49 per cent stake. Shares of Prudential rallied over 6 per cent after the announcement on the London Stock Exchange.

 

In 2016, Prudential had divested its stake in ICICI Prudential Life Insurance Company, another joint venture firm with the ICICI Bank group.

 

Currently, ICICI Bank owns 51 per cent stake in ICICI Prudential AMC, while Prudential holds the remaining 49 per cent.

 

Rival HDFC Asset Management Company, the largest listed AMC, is valued at ~79,000 crore at present.

 

In a note last year, Nomura had said it expects the domestic MF industry’s assets under management (AUM) of MFs to grow at a compounded annual growth rate (CAGR) of 18 per cent over the next five years.

 

The MF AUM as a percentage of nominal GDP, which is around 18 per cent now, is expected to increase to 26 per cent by the financial year 2030, it said.

 

In 2021, SBI MF, the country’s biggest fund house, too had announced its plan to come out with an IPO. The fund house later dropped the plan. SBI MF is a 63:37 JV between State Bank of India (SBI), India’s largest lender in terms of balance sheet size and Europe’s leading asset manager Amundi. 

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