AMC stocks rise up to 6% on June AMFI data, ICICI Prudential AMC filing IPO papers

AMC stocks rise up to 6% on June AMFI data, ICICI Prudential AMC filing IPO papers

Asset management companies' shares rose up to 6% on July 10 on positive June AMFI data and ICICI Prudential AMC filing papers for Rs 10,000-crore IPO.

The net inflow into equity mutual funds surged 24% to Rs 23,587 crore in June, reversing the declining trend of the last five months, data released by the Association of Mutual Funds in India (AMFI) on July 9 showed.

At 12:50 pm on July 10, UTI AMC shares were trading 6.2% higher at Rs 1,428 apiece while the shares of Aditya Birla Sun Life Amc Ltd rose 4% to Rs 850 apiece.

Nippon Life India Asset Management's counter was trading nearly 2% higher at Rs 815.8 while the scrip of HDFC AMC was trading 1.5% higher at Rs 5,217.5.

According to the data, equity-oriented mutual funds witnessed an inflow of Rs 23,587 crore in June, way higher than the Rs 19,013 crore inflow seen in May.

This was the first increase in net equity fund inflows after five straight months of decline.

The net inflows continuously declined from Rs 41,156 crore in December to Rs 39,688 crore in January, Rs 29,303 crore in February, Rs 25,082 crore in March, and Rs 24,269 crore in April.

On the other hand, debt funds registered a net outflow of Rs 1,711 crore in the month under review compared to a Rs 15,908 crore outflow in May.

What also aided the bullish sentiment towards AMC stocks is the fact that ICICI Prudential AMC has filed IPO papers to raise up to Rs 10,000 crore.

The proposed IPO is structured entirely as an offer for sale (OFS) of 1.76 crore equity shares by Prudential Corporation Holdings, the UK-based joint venture partner. As there is no fresh issue involved, all proceeds from the offering will go directly to the selling shareholder, with ICICI Prudential AMC receiving no capital infusion from the issue.

ICICI Prudential is involved in managing mutual funds, providing portfolio management services, managing alternative investment funds, and providing advisory services to offshore clients. In addition to its mutual fund business, the company has a growing alternatives business across PMS, AIF and offshore businesses.

The company's IPO will be managed by 18 merchant bankers, including Citigroup Global Markets India Private Limited, Morgan Stanley India Company Private Limited, BofA Securities India Limited, Axis Capital, SBI Capital Markets and ICICI Securities.