Data from the Bombay Stock Exchange and the National Stock Exchange showed that the issue was oversubscribed 10.46 times, on Friday evening. It had reportd a profit after tax figures of Rs 1,385.73 crore, 1,515.52 crore and Rs 1,562.44 crore in FY12, FY13 and FY14, respectively. PremjiInvest, the private investment arm of Wipro chairman Azim Premji, has about 4 percent stake in ICICI Prudential Life. The anchor book is the portion of the IPO that bankers allot to institutional investors on a discretionary basis.
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India this year raised the maximum foreign shareholding allowed in a local insurer to 49 per cent.
The price band for the Rs 6,057-crore IPO has been fixed at Rs 300-334 per share.
The targeted valuation is nearly 50% higher than past year when Singapore state investment arm Temasek acquired a 2% stake in a deal that valued the company at Rs 32,500 crore.
India’s IPO market has been on a roll, with first time share sales so far this year, excluding ICICI Pru Life’s, amounting to $1.84 billion, 75 per cent higher than a year earlier, according to Thomson Reuters data.
About the company: The company was established in 2001 as a joint venture between ICICI Bank and Prudential Corporation Holdings.
This would be the biggest initial public offering after Coal India. During 2011-12 and 2015-16, company’s retail weighted received premium (RWRP) witnessed a CAGR of 15.2 per cent compared to a CAGR of 6.7 per cent in the private sector and a decline of 2.1 per cent per annum in the overall Indian life insurance sector.
ICICI Bank has around 68 percent stake in the insurer, while Prudential has 26 percent. Among other major shareholders, PremjiInvest has 4 per cent in the insurance company while Temasek owned 2 per cent. But ICICI Prudential will become the first listed insurance firm.
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ICICI Prudential Life began operations in 2001. Bank of America Merrill Lynch and ICICI Securities are the lead bankers. Citic CLSA Capital Markets Ltd., Deutsche Bank AG, Edelweiss Financial Services Ltd., HSBC Holdings Plc, IIFL Holdings Ltd., JM Financial Ltd., SBI Capital Markets Ltd. and UBS Group AG are also working on the share sale.
