Prudential plc, on December 6, announced that ICICI Prudential Asset Management Company had filed the Red Herring Prospectus (RHP) with the Registrar of Companies, Delhi and Haryana at Delhi, for an initial public offering (IPO).
The RHP has also been filed with the Securities and Exchange Board of India (SEBI), BSE Limited (BSE) and National Stock Exchange of India Limited (NSE).
The issue, reportedly pegged at around ₹10,000 crore, is an offer for sale (OFS) of up to 9.91% of the equity share capital in ICICI Prudential Asset Management by Prudential Corporation Holdings Limited, a subsidiary of Prudential.
The company said the IPO and the amount of the offer for sale remain subject to market conditions, requisite approvals and other considerations.
In addition to the potential IPO, Prudential plc said it continues to consider a private sale of 2% of ICICI Prudential Asset Management Company to ICICI Bank.
“We are also considering an additional pre-IPO placement to select institutional investors before the completion of the IPO,” said Prudential.
ICICI Prudential AMC IPO
ICICI Prudential AMC submitted its draft papers to SEBI on July 8. According to the draft papers, the purpose of the offer is to carry out the OFS and to gain the benefits of listing the equity shares on the stock exchanges.
As Mint reported earlier, the book-running lead managers of the IPO include ICICI Securities, Citigroup Global Markets India, Morgan Stanley India Co., BofA Securities India, and Goldman Sachs (India) Securities, among others. KFin Technologies Ltd will be the registrar to the offer.
Among the key risks, the underperformance of the company’s investment products may cause a decline in its assets under management, including PMS, AIF, and advisory assets, which could negatively impact its business, financial performance and cash flows.
Rising competition from both existing and new players is another key risk. Intense competition could slow growth, erode market share or lead to lower fees, affecting the company’s business, financial condition and cash flows.
Notably, HDFC Asset Management Co., Nippon Life India Asset Management, Aditya Birla Sun Life AMC, UTI Asset Management Co., Canara Robeco Asset Management Co., and Shriram Asset Management Co. are other major players in the asset management space.
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