ICICI Bank subsidiary ICICI Prudential AMC sets IPO price band at ₹2,061–₹2,165

India's second-largest lender, ICICI Bank Ltd, on Saturday (December 6) announced that its subsidiary, ICICI Prudential Asset Management Company Ltd (ICICI AMC), has set the price band for its initial public offering at ₹2,061 to ₹2,165 per equity share. Each equity share carries a face value of ₹1.

ICICI AMC has also informed that the minimum bid lot for the IPO will be 6 equity shares, with bids allowed in multiples of 6 shares thereafter. The company's maiden public offering will conclude on December 16, and bidding for anchor investors will take place on December 11, according to the red herring prospectus.

The issue is an entirely an offer for sale (OFS) of 4.89 crore equity shares by promoter -- UK-based Prudential Corporation Holdings, with no fresh issue component. Since the issue is entirely an OFS, the company will not receive any capital from the offer, and the proceeds will go to the selling shareholder.

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At present, ICICI Bank holds a 51% stake in the asset management company, while the remaining 49% is with its joint venture partner, Prudential Corporation Holdings.

On June 28, ICICI Bank stated that its board approved an additional 2 per cent increase in its stake in ICICI Prudential AMC. This purchase will primarily be towards maintaining the bank's majority shareholding in the event of the grant of stock-based compensation by the company, the private sector bank stated.

In February, the bank announced its intention to retain a majority holding in ICICI Prudential AMC even though its joint venture partner plans a listing and partial divestment of its stake in the fund house. This would be the fifth asset management firm to list on the exchanges, following HDFC AMC, UTI AMC, Aditya Birla Sun Life AMC, Shriram AMC, and Nippon Life India Asset Management.

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Moreover, this would also be the fifth entity to get listed from the ICICI Group after ICICI Bank, ICICI Prudential Life Insurance Company, ICICI Lombard General Insurance Company, and ICICI Securities.

On Friday (December 6), shares of ICICI Prudential Life Insurance Company Ltd ended at ₹625.25, up by ₹10.70, or 1.74%, on the BSE.