ICICI Pru: ICICI Pru AMC plans IPO, UK promoter may sell Rs 10,000 crore stake

ICICI Prudential Asset Management, India’s second-largest mutual fund house, is likely to be listed on Indian bourses soon, as one of its sponsors, Prudential Plc, has begun discussions with merchant bankers for an initial public offering (IPO).

The AMC, with assets under management (AUM) of over Rs 9 lakh crore as of December 2024, is a joint venture between ICICI Bank and Prudential Plc. While ICICI Bank owns 51% stake in the fund house, Prudential held 49%.

According to people familiar with the development, Prudential is expected to divest about 10-15% of its stake through a fully offer-for-sale IPO, aiming to raise up to Rs 10,000 crore. However, the UK-based insurer and investment firm has yet to invite formal pitches from merchant bankers.

Prudential Plc said that it is evaluating a potential listing of ICICI Prudential Asset Management Company involving the partial divestment of its shares, subject to market conditions, requisite approvals and other considerations. “It is intended that following the completion of such a divestment, the net proceeds would be returned to shareholders. We will provide a further update at an appropriate time,” the UK based firm said.

An email query sent to ICICI Bank and ICICI Prudential AMC did not elicit any response.

Currently, four mutual funds—HDFC, Nippon Life India, UTI, and Aditya Birla Sun Life—are listed on the stock exchanges. HDFC Asset Management Company, India’s third-largest mutual fund, had an AUM of Rs 7.89 lakh crore as of December 31, 2024, and is currently valued at Rs 79,298 crore.Nippon Life India Asset Management, with an AUM of Rs 5.65 lakh crore, has a market capitalization of Rs 34,805 crore. The market capitalization of Aditya Birla Sun Life and UTI Mutual Fund stood at Rs 19,172 crore and Rs 12,983 crore, respectively, as of Wednesday.According to Prudential, India is a strategically important market for Prudential with compelling growth prospects. “We will continue to explore opportunities to grow our businesses in the market.”