ICICI Prudential AMC shares fell to Rs 3,060.70 after promoter Prudential Corp began selling a 2% stake in the company.

Here’s what’s behind the move. Prudential Corporation Holdings, a UK based promoter entity, disclosed on Wednesday that it planned to sell up to 2% of ICICI Prudential AMC’s paid up equity capital.

That works out to roughly 98.85 lakh shares, all to be sold on the open market during Thursday’s session. The reason given is fairly routine.

The company said the sale is meant to help meet minimum public shareholding norms, which require a certain portion of shares to be held by public investors rather than promoters.

Once this sale goes through, the combined stake held by ICICI Prudential AMC’s promoters and promoter group will come down from 87.60% to 85.60%.

ICICI Bank, the other promoter, has said it won’t buy any shares during the session, and neither will other entities linked to Prudential’s promoter group.

On the business side, things have actually been going well. In the June quarter, ICICI Prudential AMC’s net profit jumped 23% year on year to Rs 964.63 crore, while revenue from core operations grew 17.55% to Rs 1,564.22 crore.

The company also added new customers during the quarter, taking its unique customer base to 1.73 crore, up from 1.51 crore a year earlier.

Even after today’s fall, the stock is still up more than 17% since the start of the year, though it has lost close to 3.5% over the past week.

As of 15:00 pm, ICICI Prudential AMC shares were at Rs 3,102.70 on the NSE, down 3.73% for the day.

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