ICICI Bank to maintain over 51% stake in all three of its listed entities: ED

Mumbai: ICICI Bank plans to maintain over 51 per cent ownership in all three of its listed subsidiaries and will also keep majority control in ICICI Prudential Asset Management Company ahead of its IPO, Executive Director Sandeep Batra said on Monday.

To ensure this, the bank will increase its stake in the AMC from 51 per cent to 53 per cent before the public issue.

ICICI Prudential AMC MD and CEO Nimesh Shah said the bank will buy the additional 2 per cent stake at the same price offered to other IPO

investors.

Prudential’s stake will fall from 49 per cent to 47 per cent after selling shares to ICICI Bank and further to 37 per cent post-IPO. As per Sebi rules, Prudential must eventually reduce its holding to 22 per cent over five years.

Shah said only 9 per cent of the AMC’s Assets Under Management (AUM) comes through ICICI Bank’s network. He downplayed regulatory concerns around frequent rule changes, calling them opportunities in a volume-driven business.

De-spite higher costs, he said ICICI Prudential AMC remains India’s most profitable asset manager, with a 20 per cent profit share against its 13.3 per cent AUM share.

He added that new direct-selling entrants have yet to build meaningful AUM and that investors ulti-mately choose performance.

The company has also applied to launch a specialised investment fund within six months and will integrate ICICI Venture’s private equity business as its fifth unit, giving it stronger capabilities in new-age sectors.