Shares spark after Prudential confirms Indian IPO plans

(Sharecast News) - Shares in Prudential sparked on Monday, after the insurer confirmed plans for a potential initial public offering of its Indian joint venture. The blue chip said over the weekend that ICICI Prudential Asset Management Company Limited (IPAMC) had filed an early stage 'red herring' prospectus in Delhi concerning a possible IPO.

Under the proposed terms, Prudential would sell up to 9.91% of its equity in IPAMC.

It also confirmed it was considering a possible 2% sale to its joint venture partner, ICICI Bank, noting: "We are considering an additional pre-IPO placement to select institutional investors before the completion of the IPO."

As at noon, GMT, the stock had risen 3% at 1,107.5p, making it the biggest gainer in the FTSE 100.

Prudential, which is heavily focused on Asia, first signalled plans to sell a portion of its 45% stake in July.

Panmure Liberum estimated selling down the holding could raise around $600m, with the proceeds contributing to future share buybacks.

Abid Hussain, analyst, said: "If the market will not assign fair value to the stock, it pays to list/sell/divest component parts of the business that are trading on materially higher multiples that the group.

"Given management is guiding to over 10% growth in new business profit, earnings and cash generation and dividends for the 2025 full year, and committing to its 2027 growth targets, the shares should be trading materially higher in our view."

Prudential is a corporate broking client of Panmure.