Prudential Corporation Holdings Ltd, a UK-based promoter of ICICI Prudential Asset Management Company Ltd, is set to offload a 2% stake in the Indian asset manager. The sale, comprising up to 98.85 lakh shares, will take place through the open market on Thursday, August 27. Following the announcement, shares of ICICI Prudential AMC experienced a decline, falling 1.90% to close at Rs 3,223.60 on Wednesday.
The divestment is being undertaken to ensure compliance with India's minimum public shareholding requirements for listed entities. This strategic move by Prudential Corporation Holdings is expected to reduce the combined shareholding of ICICI Prudential AMC's promoters and promoter group from 87.60% to 85.60%.
Details regarding a floor price for the shares or the expected proceeds from the sale have not been disclosed by the company. The sale may be executed in one or multiple tranches throughout the trading session on Thursday.
Notably, ICICI Bank Ltd, the other primary promoter of ICICI Prudential AMC, has confirmed it will not purchase shares from the open market during the August 27 sale. Similarly, Prudential Corporation Holdings and its associated promoter group entities, along with connected persons of its ultimate holding company, Prudential plc, will also refrain from participating in the share purchase on the specified day.
This significant stake sale highlights ongoing efforts by companies to align with regulatory mandates, often leading to short-term market reactions as seen with ICICI Prudential AMC's stock performance.