ICICI Prudential Fund Raises Record $1.3 Billion in New Offer

The logo of ICICI Prudential Asset Management Co. is displayed at the company's offices in Mumbai. (Photographer: Adeel Halim/Bloomberg)

ICICI Prudential Fund Raises Record $1.3 Billion in New Offer

India’s ICICI Prudential Mutual Fund has raised more than 100 billion rupees ($1.3 billion) under its initial offer for a new plan, as a record run in equities continues to draw individual investors to stocks.

The funds raised under the ICICI Prudential Flexicap Fund, which will invest in companies across market capitalizations, is the highest ever for an actively managed open-ended equity fund, according to the money manager. The fund will use an in-house model to ascertain the allocation into stocks of large-, mid- or small-sized companies.

Indian investors plowed money into the nation’s equity funds for a fourth straight month in June, even as a deadly wave of coronavirus infections spurred lockdowns in states to contain the spread. The ICICI fund received money from 400,000 retail investors. The benchmark S&P BSE Sensex has gained nearly 11% this year and is trading near a record high touched last week.

“Stock markets globally and in India have been supported by liquidity unleashed by the global central banks,” said Nimesh Shah, chief executive officer at ICICI Prudential Asset Management Co. India’s “economic recovery though seems to have been delayed due to the second wave of the pandemic, but we believe the recovery is well on track given the resilient domestic economic indicators, favorable macro environment, government policies and supportive RBI measures,” he said, referring to the Reserve Bank of India.

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