Upcoming IPOs: ICICI Prudential AMC, Powerica, 2 others get SEBI's approval to launch public offers

Upcoming IPOs: ICICI Prudential Asset Management Company (AMC), a subsidiary of ICICI Bank, has secured SEBI's approval to raise funds through an initial public offering (IPO), an update with the markets regulator showed on Monday.

The company is aiming to raise ₹10,000 crore through its public offering, which is likely to hit the market this month, according to market sources.

Apart from ICICI Prudential AMC, three more companies -- power solutions provider Powerica Ltd, Technocraft Ventures, a wastewater treatment solutions provider, and Annu Projects -- received SEBI's approval to float IPOs.

All four companies, which filed their preliminary IPO papers between July and August, obtained the regulator's observations during November 17-26, the update showed.

In SEBI's parlance, receiving observations is equivalent to its go-ahead to proceed with a public issue.

In the ICICI Prudential AMC case, its proposed IPO comprises an offer for sale (OFS) of 1.76 crore equity shares by promoter -- UK-based Prudential Corporation Holdings, with no fresh issue component, according to the draft red herring prospectus (DRHP).

Since the issue is entirely an OFS, the company will not receive any capital from the offer, and the proceeds will go to the selling shareholder.

At present, ICICI Bank holds a 51% stake in the asset management company, while the remaining 49% is with its joint venture partner Prudential Corporation Holdings.

On June 28, ICICI Bank stated that its board approved an additional 2 per cent increase in its stake in ICICI Prudential AMC.

This purchase will primarily be towards maintaining the bank's majority shareholding in the event of the grant of stock-based compensation by the company, the private sector bank said.

In February, the bank announced its intention to retain a majority holding in ICICI Prudential AMC even though its joint venture partner plans a listing and partial divestment of its stake in the fund house.

This would be the fifth asset management firm to list on the exchanges, following HDFC AMC, UTI AMC, Aditya Birla Sun Life AMC, Shriram AMC and Nippon Life India Asset Management.

Moreover, this would also be the fifth entity to get listed from the ICICI Group after ICICI Bank, ICICI Prudential Life Insurance Company, ICICI Lombard General Insurance Company and ICICI Securities.

Powerica's ₹1,400-crore IPO is a combination of fresh issue of shares worth ₹700 crore along with an Offer For Sale (OFS) of shares valued at ₹700 crore by promoters, according to the draft papers.

Of the fresh issuance, funds worth ₹525 crore will be utilised to pare the company's debt, and a portion will be used for general corporate purposes.

Technocraft Ventures' maiden public offering comprises a fresh issuance of up to 95.05 lakh equity shares along with an OFS of 23.76 lakh shares by promoter Kartikey Constructions, draft papers showed.

Proceeds from the fresh issue to the tune of ₹138 crore will be utilised to fund the working capital requirements and the balance for general corporate purposes.

Annu Projects' IPO is entirely a fresh issue of 2.20 crore equity shares, draft papers showed.

The approval comes at a time when the primary market is witnessing robust momentum. So far this year, 96 companies have debuted on the stock exchanges, raising ₹1.6 lakh crore.

More than 40 of these listings occurred in the last three months alone, highlighting the heightened activity in the primary market.

In comparison, 91 public issues collectively mobilised ₹1.6 lakh crore in 2024, supported by resilient retail participation, strong private capex, and a buoyant economy.