ICICI Prudential Asset Management Company is nearing approval from India’s securities regulator to proceed with its initial public offering (IPO), according to sources familiar with the situation. This approval would set the stage for one of the largest IPOs in India this year.
The Securities and Exchange Board of India (SEBI) is expected to grant this approval shortly, as indicated by these sources who requested anonymity due to the confidential nature of the information. ICICI Prudential has initiated early discussions with potential investors and aims to launch the offering next month.
If the IPO takes place this year, it could contribute to increasing India’s IPO market beyond last year’s record of approximately $21 billion, as compiled by Bloomberg data. The offering is projected to raise up to 100 billion rupees (about $1.1 billion) and could value the country’s second-largest mutual fund manager by assets at around $11 billion, according to insiders.
ICICI Securities Ltd. and Citigroup are managing the offering, which will include participation from up to 16 additional banks, marking a record for Indian IPOs. SEBI, ICICI Prudential, and the leading banks involved in the transaction have not responded to requests for comment. Prudential Plc has also declined to provide additional details.
The company submitted its draft red herring prospectus on July 8, which outlines a plan for Prudential to sell up to 17.65 million shares, representing a 10% stake in the company. ICICI Bank Ltd. currently holds a 51% share of the joint venture, while the remaining equity is owned by the UK-based Prudential.
