ICICI Bank announces proposal to buy 2% additional stake in ICICI Prudential AMC ahead of IPO

Synopsis

ICICI Prudential AMC filed its Draft Red Herring Prospectus (DRHP) dated July 8, 2025, with SEBI, BSE, and NSE for its planned initial public offering (IPO).

ICICI Bank, in a disclosure to the stock exchanges on Wednesday, announced its plans to buy an additional 2% stake in its subsidiary ICICI Prudential Asset Management Company (AMC), ahead of the latter’s initial public offering (IPO).

ICICI Prudential AMC has submitted its Draft Red Herring Prospectus (DRHP) dated July 8, 2025, to the Securities and Exchange Board of India (SEBI), BSE, and the National Stock Exchange of India (NSE) for a proposed IPO.

The offering consists of an offer for sale (OFS) of equity shares by Prudential Corporation Holdings Limited (PCHL), representing up to 10% of the Company's equity share capital. The IPO, including the size of the OFS, will be subject to market conditions, necessary approvals, and other relevant factors.

Additionally, on July 8, ICICI Bank entered into an inter-se agreement with Prudential Corporation Holdings Limited (PCHL), expressing its intention to acquire up to 2% of the Company’s fully diluted pre-IPO share capital from PCHL, prior to the completion of the IPO, according to the exchange filing.

This proposed transaction, however, will be subject to mutual agreement on final terms, necessary corporate and statutory approvals from both parties, applicable legal provisions, and other relevant considerations.

The transaction will be done for a cash consideration, which will be decided at a subsequent date.

ICICI Prudential AMC is an asset management company managing significant assets under management in the mutual fund segment and providing portfolio management services for investors spread across the country and providing investment management services to alternative investment funds.

The company also provides advisory services to its clients across international markets. ICICI Bank holds a 51% stake in the same, while PCHL holds the remaining 49% stake.

As of March 31, 2025, the AMC had total assets of Rs 43.84 billion, while the company’s profit after tax (PAT) for FY 25 stood at Rs 26.51 billion.

At 9:55 am, the shares of ICICI Bank were trading 0.95% lower at Rs 1,428.50 on the BSE.

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