ICICI Bank is pursuing to maintain a 51 percent shareholding in all three of its listed entities, The Economic Times reported on Tuesday, quoting a senior bank official. India’s second-largest private bank aims to maintain its controlling share in ICICI Prudential Asset Management Company, which is set to launch an IPO, increasing the parent organisation's stake in the entity by 2 percent, ICICI Executive Director Sandeep Batra told reporters at a press conference.
Batra said, “We are committed to ensuring all our three listed entities remain our subsidiaries. So, our stake will remain at over 51 percent.” The bank will buy the extra 2 percent share at the same price as what other investors will be paying for the IPO, the mutual fund wing’s Managing Director and Chief Executive, Nimesh Shah, said. He added that the parent company owns a 51 percent share in the ICICI Prudential Asset Management Company currently. After the launch of the IPO, the share of the bank in the entity will go up to 53 percent, solidifying ICICI Bank’s controlling share in the company.
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How will ICICI Prudential Asset Management Company be divided?
Presently, 49 percent of the shares of the IPO-bound company belong to Prudential, but the stake will go down to 47 percent after ICICI Bank buys the additional 2 percent. Prudential’s share will further go down to 37 percent after the IPO, Nimesh Shah said. Over the next 5 years, Prudential will have to sell an additional 15 percent stake, bringing down its shareholding to 22 percent as per SEBI directives, informed Shah. 9 percent of ICICI Prudential AMC’s Assets Under Management (AUM) comes from ICICI Bank at present, Shah informed.
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The future of ICICI Prudential AMC
An application has been filed on behalf of ICICI Prudential Asset Management Company to roll out a specialised investment fund and launch a subsequent public offering within the next six months, Nimesh Shah said. The public enterprise is all set to become a part of the organisation as the fifth business unit, The Economic Times reported.
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