ICICI Prudential AMC IPO — Will ICICI Bank head the HDFC Bank way in rewarding shareholders?

ICICI Bank Ltd., India's second-largest private sector lender, announced over the weekend that it has fixed the price band for the three-day Initial Public Offering (IPO) of its subsidiary ICICI Prudential Asset Management Company.

The ₹10,602 crore issue will be the fourth-largest IPO of 2025, behind Tata Capital, HDB Financial Services, and LG Electronics India.

The entire issue will be an Offer For Sale (OFS), which means that ICICI Prudential will not be receiving any proceeds from the issue. All of the proceeds will go to its parent, ICICI Bank, whose shareholding will fall to 90.09% from 100% after the IPO. The IPO will open for subscription on Friday, December 12, and close on Tuesday, December 16.

ICICI Prudential AMC's IPO takes us back to the HDB Financial issue, which had opened for subscription earlier this year.

HDB Financial's ₹12,500 crore issue comprised of an offer for sale (OFS) component by HDFC Bank worth ₹10,000 crore.

After the IPO windfall, HDFC Bank had announced a 1:1 bonus issue for its shareholders, as well as a special dividend of ₹5 per share for its shareholders. This was the first bonus issue that the lender had announced in its trading history.

The ICICI Prudential AMC IPO will also result in a ₹10,602 crore windfall for ICICI Bank, which will be part of the lender's third quarter financial statements.

The street will be awaiting further action from ICICI Bank after this windfall, as to whether it uses these proceeds to consolidate or further strengthen its balance sheet, or rewards its shareholders from those proceeds.

Back in 2017, ICICI Bank had issued bonus shares to shareholders in the ratio of 1:10, which means shareholders had received one bonus share for every 10 shares they held as on the record date.

The only other corporate action, other than dividend payouts, that ICICI Bank has carried out, is a stock split, back in December 2014, when it had split one equity share of ₹10 into five equity shares of ₹2 each.

As per the September shareholding, ICICI Bank had a total 19.2 lakh retail shareholders, or those with authorized share capital of up to ₹2 lakh, who had a 6% stake in the company.

Shares of ICICI Bank have recovered from the lows of the day, currently trading at the flat line at ₹1,392.3. The stock is up 3.3% in the last one month, and 8.5% higher on a year-to-date basis.

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