Shares of ICICI Prudential Asset Management Company declined nearly 5 percent in early trade on August 27, extending losses for a second consecutive session after reports that promoter Prudential Corporation Holdings plans to sell a 2 percent stake in the asset manager through a block deal.

The stock was trading at around Rs 3,067 in morning trade, down 4.8 percent from its previous close of Rs 3,222.80. ICICI Prudential AMC emerged as the top loser on the BSE 500 and Nifty 500 indices and was also among the most actively traded stocks across the BSE and NSE.

The latest decline takes the stock's cumulative fall over the past two sessions to around 6.8 percent. The broader market remained largely subdued, with the Sensex down around 50 points at 77,422 and the Nifty 50 little changed at 24,205 around 9:29 am.

The selling pressure followed reports that Prudential Corporation Holdings is looking to sell around 2 percent of its holding in ICICI Prudential AMC to comply with minimum public shareholding requirements. Around 98.85 lakh shares are expected to be offered in the proposed transaction, with the deal estimated at approximately Rs 2,964 crore to Rs 3,122 crore.

The reported offer price is in the range of Rs 2,998 to Rs 3,158 per share. At the lower end of the range, the offer price represents a discount of around 7 percent to the previous closing price, while the upper end represents a discount of approximately 2 percent.

The actual block transaction had not been formally announced at the time of reporting.

Prudential Corporation Holdings held a 34.59 percent stake in ICICI Prudential AMC as of the quarter ended June. The proposed transaction is expected to be a secondary stake sale, meaning the proceeds would accrue to the selling shareholder rather than the company. No fresh shares are expected to be issued as part of the transaction.

The proposed stake sale comes shortly after ICICI Prudential AMC reported strong first quarter financial performance. Net profit increased 25.5 percent year on year to Rs 965 crore from Rs 769 crore, while total income rose 20.2 percent to Rs 1,745 crore. Revenue from operations increased 17.6 percent to Rs 1,564 crore.

Despite the recent correction, ICICI Prudential AMC shares remain up around 22 percent so far in 2026, significantly outperforming the Nifty 50, which has declined around 7.4 percent over the same period.

At Wednesday's closing price, ICICI Prudential AMC had a market capitalisation of approximately Rs 1.59 lakh crore. The proposed promoter stake sale could increase the company's public shareholding while creating near term supply pressure on the stock.