Prudential mulls IPO for Indian fund management joint venture

• Prudential owns a 49% stake in ICICI Prudential Asset Management
• The London-based firm is already undertaking a £1.6bn share buyback

By HARRY WISE

Updated: 15:38 GMT, 12 February 2025

Prudential is considering taking its Indian joint venture business public to help fund returns to shareholders.

Britain’s largest insurer by market cap said it was evaluating a possible listing of ICICI Prudential Asset Management via a ‘partial divestment’ of its shares, ‘subject to market conditions, requisite approvals and other considerations’.

Prudential owns a 49 per cent stake in the partnership, one of India’s largest investment management groups, which the insurer started in 1993 with the Mumbai-based financial services giant ICICI.

The London-based firm, founded in Hatton Garden in May 1848, intends to return net proceeds to investors following the divestment.

It is already undertaking a $2billion (£1.6billion) share buyback that it expects to finish no later than mid-2026, with the first $700million completed last November.

The insurer did not mention where it might look to list the business, opening the door for a potential bumper IPO for London markets.  

Prudential shares rose 7.8 per cent to 736p by mid-Wednesday afternoon following the announcement, making them the FTSE 100 Index’s top performer.

Going public: Britain’s largest insurer by market cap said it was evaluating a possible listing of ICICI Prudential Asset Management via a ‘partial divestment’ of its shares 

The company is seeking to expand its presence in the Indian market as part of a pivot towards Asia and Africa.

It told investors on Wednesday: ‘India is a strategically important market for Prudential with compelling growth prospects. We will continue to explore opportunities to grow our businesses in the market.’

At the same time, Prudential is trying to diminish its reliance on Hong Kong and China, where sales were severely impacted by zero-Covid policies preventing mainland Chinese customers from crossing into Hong Kong to purchase insurance policies.

However, trading has recovered as cross-border curbs have loosened, and the firm expects the two territories to provide a significant chunk of business going forward.

In the first nine months of last year, Prudential’s new business profits increased by 11 per cent to £2.35billion, driven by strong performances in Greater China, Africa and the ASEAN countries.

The group said total annual new business profits in 2024 were on track to expand by 9 to 13 per cent.

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Prudential mulls IPO for Indian fund management joint venture

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