Prudential offloads 2% stake in ICICI Prudential AMC; stock slides 3.8% in bulk deal
The deal, executed by ICICI Securities, is entirely secondary, meaning no new capital will be raised for the company
ICICI Prudential Asset Management Company's shares plummeted by 3.82% on Thursday after the promoter, Prudential Corporation Holdings Ltd, initiated a sale of up to 9.88 million equity shares, representing roughly 2% of the firm's total share capital. The block, managed by ICICI Securities and other placement agents, was priced between ₹2,998 and ₹3,158 per share, a discount of 2-7% compared to Wednesday's closing price of ₹3,222.80 on the NSE.
The deal, valued at around ₹31,217 million (approximately $327 million), is entirely secondary with no new capital being raised by the company. The sale aims to adhere to SEBI's minimum public shareholding norms, with the promoter group's stake reducing from 87.60% to 85.60% following the divestment. ICICI Bank Ltd, the other major promoter, committed not to buy shares on the day of the sale.
The company disclosed the transaction to comply with SEBI regulations, subject to a 60-day lock-up post-transaction for the seller.
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