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Mumbai– ICICI Prudential Asset Management Company (AMC), one of India’s leading mutual fund houses, has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI), signaling the launch of its initial public offering (IPO). The move marks a major milestone for the joint venture between ICICI Bank and Prudential Plc, offering investors a chance to own part of the country’s second-largest mutual fund manager by assets.
📌 IPO Structure: Offer-for-Sale Only
The proposed IPO is structured as a 100% Offer-for-Sale (OFS). Prudential Corporation Holdings Ltd (PCHL), the UK-based joint venture partner, intends to offload up to 1.76 crore equity shares, which is approximately 10% of the company’s equity. Notably, there’s no fresh equity issuance, meaning all proceeds (potentially up to ₹10,000 crore) will go directly to PCHL, not to ICICI Prudential AMC.
Makeshift approval for a bonus share issue (1.8:1) could potentially raise the OFS total to 4.94 crore shares. The IPO will list on both the BSE and NSE.
🇮🇳 ICICI Bank to Retain Control
Ahead of the listing, ICICI Bank plans to purchase up to 2% additional stake from PCHL, reinforcing its 51% majority holding in the AMC and safeguarding against dilution from potential stock-based compensation. Following the IPO, ICICI Prudential AMC will remain an ICICI Bank subsidiary.
💰 Financial Strength: Robust and Scalable
ICICI Prudential AMC is the largest active asset manager in India, with a 13.3% market share of Quarterly Average Assets Under Management (QAAUM) as of March 31, 2025 . The AMC managed ₹8.79 lakh crore in QAAUM and served 14.6 million retail investors across 135 schemes.
Fiscal 2024–25 financials demonstrate solid performance:
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Revenue: ₹4,977 crore (up 32% YoY)
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Profit after tax: ₹2,650.7 crore (up 29%)
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Return on Equity (RoE): ~83%
The AMC’s core operations span equity, debt, passive, hybrid funds, PMS/AIF platforms, and global advisory—highlighting a well-diversified business model.
🧭 Market Position & Leadership
ICICI Prudential AMC is the second-largest mutual fund house in India. The IPO would make it the sixth AMC to list publicly—alongside HDFC AMC, Nippon Life, UTI, Aditya Birla Sun Life, and Shriram AMC. For ICICI Bank, it would mark the fifth listing of a group entity, following ICICI Bank itself, ICOICI Prudential Life, ICICI Lombard, and ICICI Securities.
🌍 Global and Digital Edge
The AMC leverages Prudential’s global asset management experience and ICICI Bank’s strong retail distribution channels. Digitally, the firm has deep penetration, with over 93% of transactions executed online, 20.9 million digital purchases, and 3.1 million customers onboarded digitally in FY25—underscoring its fintech-driven growth lens.
📑 Bookrunners & Timeline
A record 18 merchant bankers, including Morgan Stanley, Citi, Axis Capital, BofA, Kotak, ICICI Securities, Goldman Sachs, and others, have been appointed to manage the IPO.
Key details like price band, IPO date, and lot size will be announced after SEBI’s DRHP review process. The sale will include retail, non-institutional, and qualified institutional investor quotas, with up to 10% reserved for ICICI Bank shareholders.
📈 What This Means for Investors
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Access to AMC’s upside: For the first time, investors can directly acquire a stake in a leading fund management house.
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No dilution risk: Since this IPO is OFS only, the AMC’s capital structure remains unchanged.
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Institutional credibility: With Prudential offloading stake, and strong lead managers onboard, institutional interest could be robust.
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Bank’s commitment: ICICI Bank strengthening its stake highlights confidence in future growth.
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