Lunate, Premji Invest, Jhunjhunwala Estate Among 26 Investors as Prudential Offloads 4.5 percent Stake in ICICI Pru AMC

The one-day IPO anchor book will be launched on December 11, while the offer for the public will remain open till December 16.

UK-based promoter entity Prudential Corporation Holdings has reduced its 4.5 percent stake for over Rs 4,815-crore in ICICI Prudential Asset Management Company ahead of initial public offering launch.

ICICI Bank's subsidiary ICICI Prudential AMC is set to hit Dalal Street with its Rs 10,602-crore maiden public issue on December 12, with price band of Rs 2,061-2,165 per share. It is entirely an offer-for-sale of 4.89 crore shares (equivalent to 9.9 percent of pre-offer paid-up equity) by Prudential Corporation Holdings.

The one-day IPO anchor book will be launched on December 11, while the offer for the public will remain open till December 16.

Prudential Corporation Holdings has entered into share purchase agreement with ICICI Bank on December 8 for selling 2 percent stake in the AMC to bank.

Further, the share purchase agreement for the 2.5 percent stake was signed between the UK promoter and a consortium of 26 institutional investors on December 7 and 8. The group included Lunate Capital and Lunate, the Abu Dhabi–based sovereign fund, along with PI Opportunities Fund, 360 ONE, HDFC Life, WhiteOak, HCL Capital, Aditya Birla Sun Life AMC, DSP MF, 3P India Equity Fund, Hero Enterprise, TIMF Holdings, Kedaara Capital and Claurs Capital. Several leading insurance companies also participated, including SBI Life, HDFC Life, Kotak Life, Birla Life, Bajaj Life, TATA AIG and Go Digit General Insurance.

Marquee investors such as Premji Invest, the University of California, 360 ONE funds, the estate of the late Rakesh Jhunjhunwala, DSP India funds, HCL Capital, 3P India managed by Prashant Jain, Manish Chokhani and Madhu Kela were also part of the transaction. The agreement additionally drew interest from large FIIs including WhiteOak, Janchor, ChrysCapital, Malabar and Think Investments, along with Kotak Mahindra Life Insurance.

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As a result, Prudential Corporation Holdings, a part of multinational insurance and asset management group Prudential plc, has transferred 2.22 crore equity shares in the AMC, representing 4.5 percent of the pre-offer paid-up equity to ICICI Bank and above-mentioned investors on December 9.

"The sale shares do not form part of the equity shares proposed to be offered for sale by the promoter (Prudential Corporation) in the offer (IPO)," ICICI Prudential AMC said.

The share transfer has taken place at the upper price band and Prudential Corporation Holdings has received Rs 4,815.1 crore against the stake sale. Post stake sale, the shareholding of the UK promoter in ICICI Prudential AMC reduced to 44.5 percent, down from 49 percent earlier, while the same for ICICI Bank has been increased to 53 percent from 51 percent earlier.

ICICI Bank bought the said 2 percent stake for Rs 2,140.1 crore at a valuation of Rs 107,007 crore.

Post issue, the shareholding of Prudential Corporation Holdings in ICICI Prudential AMC will get reduced to 34.6 percent from 44.5 percent currently.

ICICI Prudential AMC, the second largest asset management company in India which has been operating as a joint venture between ICICI Bank and UK-based Prudential Corporation Holdings for more than 26 years, will not receive any money from the IPO. All the funds will go to the UK promoter, the selling shareholder.

The asset management company has managed 143 mutual fund schemes, competing the four listed peers (HDFC AMC, Nippon Life India Asset Management, UTI AMC, and Aditya Birla Sun Life AMC) in the sector. Its shares will be available for trading on the bourses effective December 19.

The merchant bankers managing the ICICI Prudential AMC IPO are Citigroup Global Markets India, Morgan Stanley India Company, BofA Securities India, Axis Capital, CLSA India, IIFL Capital Services, Kotak Mahindra Capital Company, Nomura Financial Advisory and Securities (India), SBI Capital Markets, ICICI Securities, Goldman Sachs (India) Securities, Avendus Capital, BNP Paribas, HDFC Bank, JM Financial, Motilal Oswal Investment Advisors, Nuvama Wealth Management, and UBS Securities India.