British Insurer Prudential sold 4.5% stake in its Indian JV ahead of its $1.2 Billion IPO

Synopsis: Before​‍​‌‍​‍‌​‍​‌‍​‍‌ the ₹10,602-crore IPO, Prudential disposed of a 4.5% stake in ICICI Prudential AMC for ₹4,900 crore. There was a buying spree by significant foreign and local investors, and the stock is going to be listed on December ​‍​‌‍​‍‌​‍​‌‍​‍‌19.

In this article, we look at the major pre-IPO move by Prudential that has drawn strong attention to its Indian joint venture. The fund house, which is one of the biggest players in the asset management space, has seen notable investor interest just before its listing. Let’s break down what happened.

About the Sale

British insurer Prudential has divested (sold) a 4.5 percent stake in ICICI Prudential Asset Management for Rs 4,900 crore (approximately $545 million), merely one day prior to the fund house’s highly anticipated $1.2 billion (Rs 10,600 crore) IPO launch. 

The sale attracted high-quality interest from marquee investors such as Abu Dhabi Investment Authority (ADIA), the family offices of Azim Premji and Rakesh Jhunjhunwala, as well as large Indian insurers such as SBI Life, HDFC Life and Go Digit. ICICI Bank also bought additional shares worth Rs 2,140 crore in this round.

The IPO will not see any new shares issued by the company. Instead, it’s ICICI Prudential only that will offload a 10 percent stake via OFS. The business will debut on the markets on December 19. Prudential also said that proceeds from the private placement and the IPO will be returned to its own shareholders.

ICICI​‍​‌‍​‍‌​‍​‌‍​‍‌ Prudential Asset Management is a joint venture between ICICI Bank and British insurer Prudential. The shares are divided between the two companies, with ICICI Bank holding 51 percent and Prudential holding the rest (49 percent). The collaboration leverages ICICI’s (the second largest private lender in India) solid position in India’s financial sector and Prudential’s worldwide experience in insurance and investment management. ​‍​‌‍​‍‌​‍​‌‍​‍‌

About the IPO

ICICI​‍​‌‍​‍‌​‍​‌‍​‍‌ Prudential Asset Management Company, India’s largest active mutual fund manager, is going to make a significant stock market debut with its Rs 10,602 crore IPO opening on December 12. This issue is a full offer for sale (OFS), so no new shares will be created. The price band is set at Rs 2,061-2,165 per share, and the subscription window will be open until December 16.

The offer for sale includes the sale of 4.90 crore shares by the existing shareholders, which is the British insurer Prudential. With a heritage going back to 1993, ICICI Prudential AMC has gained a good name through its “risk-first” investment approach. As of September 2025, the company manages a huge quarterly average AUM of Rs 10,148 billion, and in addition, it provides PMS, AIF, and offshore advisory services. On the financial side, the AMC has been increasing its revenues and profits consistently for quite some time. 

The net profit went up from Rs 1,515 crore in FY23 to Rs 2,049 crore in FY24, and then to Rs 2,650 crore in FY25. Just in the first half of FY26, the net profit was Rs 1,617 crore. The revenue has also been growing without a break. It reported Rs 2,837 crore in FY23, and then it went up to Rs 4,977 crore in FY25. Already in the first six months of FY26, it has reached Rs 2,949 ​‍​‌‍​‍‌​‍​‌‍​‍‌crore.

Written by Satyajeet Mukherjee

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