The country's largest private sector bank was bullish about the Indian mutual fund industry, which is growing at 20 per cent per annum and synergy in distribution of products and hence decided to increase our stake, deputy managing director Kalpana Morparia said on Friday.
The Bank has decided to raise its stake to 51 per cent by purchasing additional six per cent of paid-up capital from Prudential Plc in asset management company as well as trust company, she said.
The transaction was subject to regulatory approvals, Morparia added. Asked about the value of the transaction, she said the value of transaction was likely to be within the industry average of six per cent of assets under the management.
After completion of the transaction, Prudential Plc would hold 49 per cent stake in the asset management company and trust company, she said.
The assets under management of Prudential ICICI AMC have grown from Rs 160 crore (Rs 1.6 billion) in 1998 to Rs 17,900 crore (Rs 179 billion) by the end of December 2004, the Bank said.
Both partners look forward to the opening up of the pension sector and further strengthening of relationship in the life insurance joint venture as regulations permit, a release said.