Shares of ICICI Prudential Asset Management Company (AMC) dropped 4% in early trade on Thursday, Aug. 27 after NDTV Profit reported that Prudential Corporation Holdings is set to sell a 2% stake in ICICI Prudential Asset Management Company (AMC) through a block trade. Sources told NDTV Profit that the transaction estimated to be worth around Rs 2,964 crore to Rs 3,122 crore.
On Thursday, shares of ICICI Prudential AMC opened at Rs 3,099.70 against a previous close of Rs 3,222.80 and extended losses by upto 4% to hit an intraday low od Rs 3,060.70 apiece on the NSE. The stock last traded 3.79% lower at Rs 3,100.70 apiece on the NSE. This compares to a fall of 0.20% in the Nifty 50 benchmark. The stock has delivered 19% returns on a year-to-date basis. The ICICI Group AMC commands a market cap of Rs 1,52,523.24 crore, as per NSE data.
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ICICI Prudential AMC Block Deal
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.
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.
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