Prudential plc is planning a potential listing of ICICI Prudential Asset Management Company, its mutual fund venture in India, the UK-based insurer and asset manager said in a statement.
It said it was evaluating a listing “involving the partial divestment of its shares,” and added that following the completion of the divestment, the net proceeds would be returned to shareholders. Prudential plc holds 49 per cent stake in the JV which was formed in 1998.
ICICI Bank, which holds a major 51 per cent stake in the JV, said in an exchange filing that it intended to retain its majority shareholding in the asset management company (AMC). “We intend to retain our majority shareholding in ICICI Prudential Asset Management Company, ensuring our long-term commitment,” it said.
Prudential said India was a strategically-important market for it “with compelling growth prospects. We will continue to explore opportunities to grow our businesses in the market.” It added that it would provide an update on the listing plans of the JV “at an appropriate time”.
Investment bankers said that a bulk of the IPO or the entire issue is likely to be through an offer for sale by Prudential. The process of identifying and appointing advisors to the issue will start soon, they said.
Assets managed
The second-largest fund house in the country, ICICI Prudential AMC manages assets of over ₹8.8 lakh crore across 787 schemes with an investor base of over 1.26 crore. It
It was one of the earliest AMCs to be established in India when the sector was opened up for private players.
Prudential plc provides life and health insurance and asset management in 24 markets across Asia and Africa.
Listed AMCs
There are just a few AMCs that are listed such as UTI AMC, HDFC AMC, Shriram AMC, Nippon Life India AMC and Escorp AMC.
The mutual fund industry has become a favoured mode of investing by retail investors and for corporates as an avenue to park funds in the short term as treasury management operations.
The industry AUM at over ₹68 lakh crore and monthly inflows in the region of ₹38,000 crore are a potent source of liquidity in the capital markets.
More players are entering the asset management business in India, which is seen as a lucrative opportunity with significant scope for penetration.
There are already five AMCs who have in-principle approval from the regulator to start operations.