ICICI Bank has announced its decision to increase its stake by 2% in ICICI Prudential Asset Management Company to maintain its majority shareholding amid upcoming equity-based compensation and partial stake sale by its joint venture partner.
ICICI Bank Ltd, a leading private sector bank headquartered in Mumbai, Maharashtra, announced on June 27 that its board has approved a proposal to acquire an additional 2% stake in its asset management subsidiary, ICICI Prudential Asset Management Company, to maintain its majority holding.
ICICI Bank currently holds a 51% stake in the asset manager, while the remaining 49% is owned by its joint venture partner, UK-based Prudential PLC. The move comes in light of expected equity-based compensation to employees and a potential partial stake divestment by Prudential PLC, which could impact the bank’s control in the AMC.
In a regulatory filing, ICICI Bank stated, “The board has approved the purchase of up to 2% additional shareholding in ICICI Prudential AMC, subject to receipt of requisite approvals.” The bank emphasized that the transaction is to preserve its majority ownership in case of future stock-based grants.
ICICI Bank has also received approval to amend its American Depository Receipt (ADR) Deposit Agreement, which will allow registered ADS holders to exercise voting rights on deposited securities. This change remains subject to Reserve Bank of India (RBI) clearance and must comply with Section 12B of the Banking Regulation Act, 1949.
Stock Performance
As of 2:15 PM on June 27, ICICI Bank’s share price was trading at ₹1,453.55 on the BSE, up by nearly 1%. The stock has delivered steady growth, gaining 9% over the past three months and 13% on a year-to-date (YTD) basis. Over a five-year period, ICICI Bank shares have surged over 316%, delivering multibagger returns to long-term investors.
This strategic move signals ICICI Bank’s continued focus on reinforcing its position in the asset management space amidst upcoming structural changes and market expansion.
