Prudential is considering an £8billion spin-off of its Indian asset management business on the Mumbai stock exchange in a fresh blow to the City.
The FTSE 100 life insurer said it was evaluating a potential listing of ICICI Prudential Asset Management, a joint venture in which it holds a 49 per cent stake.
It will involve a partial sale of that stake and would be ‘subject to market conditions, requisite approvals and other considerations’.
Prudential did not say where the listing would take place. But for a domestic Indian business, the Mumbai market is likely to be the favourite.
If that changes, other candidates could include London and Hong Kong. Analysts at Bank of America said the Pru’s stake in the joint venture was worth close to £4billion.
Choosing India for the listing would be a blow to the beleaguered UK stock market which has already lost a series of firms to overseas rivals.
New listing: People walk by the Bombay Stock Exchange building in Mumbai. Prudential is considering spinning-off of its Indian asset management business on the exchange
In 2023, Cambridge-based chip giant Arm Holdings chose to float in New York, prompting soul-searching in the City.
Since then, the exodus has barely abated, with gambling giant Flutter and equipment hire firm Ashtead Group also upping sticks for the Big Apple.
Hopes this year that London can stop the rot are centred on Chinese fashion giant Shein, which is looking at a UK initial public offering (IPO).
And Britain’s stock exchange will also vie for a possible IPO of De Beers – being spun-off by mining giant Anglo American.
Meanwhile, London, New York and Amsterdam are in a three-way tussle to secure the listing of the ice-cream division of Anglo-Dutch consumer goods giant Unilever. Others reported to be looking at a London IPO include veterinary care group IVC Evidensia.
Prudential said that should it go ahead with the spin-off of its Indian arm, the net proceeds would be returned to shareholders and that it would provide a further update ‘at an appropriate time’.
Bank of America analysts said the move ‘could be a positive catalyst’, adding: ‘We think several investors are not aware of the value of this business.’ Shares in Prudential surged 5.8 per cent, or 39.4p, to 722p.
ICICI Bank, which holds the remaining 51 per cent, said it intended to retain the stake.
Prudential, an insurer with historical roots in the UK, where its typical agent was once termed the ‘man from the Pru’, is today purely focused on Asia and Africa.
Its chairman, Baroness Vadera, is based in London, but Anil Wadhwani, who has been chief executive since early 2023, leads the business from Hong Kong.
Prudential has repeatedly batted off suggestions that it might quit London itself.
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