ICICI Bank To Mop Up 2% Stake In IPO-Bound ICICI Prudential AMC For Rs 2,140 Crore

ICICI Bank has executed a share purchase pact to increase its stake by 2% in ICICI Prudential AMC, according to a regulatory filing on Monday. The disclosure comes days after the asset management company filed pre-IPO papers for its Rs 10,600-crore public issue.

In its filing before the exchanges, ICICI Bank said that in accordance with the approval granted by shareholders on Aug. 30, the lender has entered into a related-party transaction for "purchase of additional shareholding of up to 2% in ICICI Prudential Asset Management Company Limited from Prudential Corporation Holdings Limited".

The stake is being purchased for a cash consideration of Rs 2,140 crore. The transfer of shares will further solidify ICICI Bank's majority holding in the asset management firm.

At present, ICICI Bank owns 51% stake, whereas the UK-based Prudential Corp. holds 49%. in ICICI Prudential AMC, which will launch its IPO on Dec. 12.

As per the red herring prospectus filed on Dec. 5, a total of 4.89 crore shares are being offloaded by Prudential Corp via an offer-for-sale. There is no fresh issue component in the IPO.

Following the public issue, shares of ICICI Prudential AMC will be listed on both the NSE and BSE.

Ahead of the opening, the grey market premium indicates an estimated listing gain of over 6% per share against the upper limit of the issue price.

The latest GMP for the ICICI Prudential AMC IPO was Rs 142, according to Investorgain data. This indicated an estimated listing price of Rs 2,307 apiece at a premium of 6.56% against the upper limit of the IPO price band. However, the GMP does not represent official data and is based on speculation.