The life insurance unit of ICICI Bank Ltd, India’s biggest private-sector lender, allotted 48.96 million shares to the anchor investors at Rs 334 apiece, it said in a statement.
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The first public offer by an insurer in Indian market would open for bidding on September 19 and is scheduled to close on September 21, during which the stock would be offered in a price band of Rs 300-334 per share. The IPO comprises only a share sale by ICICI Bank and Prudential isn’t selling its stake.
It is raising 16.35 billion rupees ($243.7 million) by selling shares to 38 anchor investors as part of the IPO.
Pte, Government of Singapore, UTI Trustee Co Ltd, SBI Trustee Co Ltd, Birla Sun Life Trustee Co Pvt Ltd, L&T Mutual Fund Trustee Ltd, Nomura India Investment Fund, Monetary Authority of Singapore, Chennai 2007, GMO Trust, IDFC Trustee Co Ltd, and Kotak Mahindra Trustee Co Ltd are some of the key anchor investors.
ICICI Bank is selling a total of up to 181.34 million shares in the insurance arm’s IPO.
The Offer would constitute 12.63% of the post-offer paid-up Equity Share capital of the Company and the Net Offer shall constitute 11.37% of the post-offer paid-up equity share capital of the Company. At the upper end of the price band, the company would raise Rs 6,057 crore.
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. ICICI Bank and the UK’s Prudential Plc will offload another 6% in the insurance company over the next three years to comply with the required 25% public float. Singapore’s Temasek and PremjiInvest also are shareholders.
Last November, ICICI Bank sold almost 6 per cent stake in ICICI Prudential to Temasek and PremjiInvest.
PremjiInvest holds 4% in the insurance company while Temasek owns 2% in the firm.
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At the end of March this year, the assets under management of ICICI Prudential which started operations in fiscal year 2001 stood at Rs 1,039.39 billion, as per its website. DSP Merrill Lynch and ICICI Securities are the global coordinators and book running lead managers to the issue. The BRLMs to the Offer are CLSA India Private Limited, Deutsche Equities India Private Limited, Edelweiss Financial Services Limited, HSBC Securities and Capital Markets (India) Private Limited, IIFL Holdings Limited, JM Financial Institutional Securities Limited, SBI Capital Markets Limited and UBS Securities India Private Limited. Further, not less than 15% of the Net Offer shall be available for allocation on a proportionate basis to Non-Institutional Investors and not less than 35% of the Net Offer shall be available for allocation to Retail Individual Bidders in accordance with the SEBI Regulations, subject to valid Bids being received at or above the Offer Price.
