Prudential Corporation Holdings is set to sell a 2% stake in ICICI Prudential Asset Management Company (AMC) through a block trade, with the transaction estimated to be worth around Rs 2,964 crore to Rs 3,122 crore, sources told NDTV Profit.
Around 98.85 lakh shares are expected to change hands in the block deal, with the offer price set in the range of Rs 2,998 to Rs 3,158 per share.
The offer price represents a discount of around 2% to 7% to ICICI Prudential AMC's August 26 closing price.
The proposed transaction is entirely a secondary sale, meaning no fresh shares will be issued by ICICI Prudential AMC as part of the deal. Prudential Corporation Holdings, a promoter of ICICI Prudential AMC, held a 34.59% stake in the company as of the quarter ended June.
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The sale of a 2% stake would therefore reduce Prudential Corporation Holdings' shareholding in the asset management company, while the proceeds from the transaction will accrue to the selling shareholder rather than the company.
ICICI Prudential AMC Q1 Results
ICICI Prudential Asset Management Co. reported a strong set of earnings for the first quarter, with net profit rising 25.5% year-on-year to Rs 965 crore from Rs 769 crore. The asset manager's total income increased 20.2% to Rs 1,745 crore, compared with Rs 1,452 crore in the corresponding period last year, reflecting healthy growth in its business.
Revenue from operations increased 17.6% year-on-year to Rs 1,564 crore, up from Rs 1,331 crore in the year-ago quarter. Operating revenue rose around 18% to Rs 1,560 crore, while operating profit grew 20% to Rs 1,100 crore.
ICICI Prudential AMC Share Price Today
ICICI Prudential AMC shares closed 2.1% lower at Rs 3,222.80 per share on Wednesday. The shares have fallen 1.48% in one week but rose 2.78% in one month. The shares are up 22.07% year-to-date.
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