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ICICI Prudential Life Insurance IPO Oversubscribed 4 times

Author: Bappaditta Jana
by Bappaditta Jana
Posted: Sep 22, 2016
The IPO of ICICI Prudential Life Insurance Company for Rs 6,057 crores has already oversubscribed more than 4 times on the last day of subscription, 21st September 2016, Wednesday. The reserved portion of the qualified institutional buyers oversubscribed about 6.88 times and the non institutional investors’ category 9.54 times, sources familiar with the IPO reported.The reserved category of the retail investors subscribed around 1.1 times while shareholders’ portion was close to 3 times. It is an offer for sale by ICICI Bank. Therefore, the company will not get any issue proceeds. It is the largest Initial Public Offer in the last six years after Coal India’s Rs 15,000 crores public issue.ICICI Prudential is the largest private sector life insurer by total premium and assets under management in Financial Year 2016. It aims to raise around Rs 5,440 to 6,057 crores through this 18.13 crores public issue at a price band of Rs 300 to 334 per share, respectively. Incorporated at Mumbai in the month July of 2000, ICICI Prudential Life already raised Rs 1,635 crores through anchor investors’ portion on Friday, the day before opening of the issue.ICICI Prudential Life is a joint venture between India’s largest private sector lender ICICI Bank and Prudential Corporation Holdings, which is a part of the UK-based Prudential Group. Before the issue, ICICI Bank held 67.52 per cent stake and Prudential Corporation Holdings 25.83 per cent stake in the company.Hasham Traders, which is owned by Azim Premji, held 4 per cent stake in the insurance company and Compassvale Investments, an indirectly wholly owned subsidiary of Temasek, has 2 per cent shareholding. The shareholding of India’s largest private sector lender will be reduced to around 55 per cent after the issue.The equity shares are proposed to be listed on the National Stock Exchange and the Bombay Stock Exchange. The Global book running lead managers to the offer are DSP Merrill Lynch and ICICI Securities. The book running lead managers are JM Financial Institutional Securities, Edelweiss Financial Services, CLSA India, Deutsche Equities India, HSBC Securities & Capital Markets (India), IIFL Holdings, SBI Capital Markets as well as UBS Securities India.At the end of FY16, ICICI Prudential was the biggest private sector insurer in the Country having a market share of 11.3 per cent. The company has 521 offices with around 10,663 employees and 1,21,016 advisors all over India as of Financial Year 2016. ICICI Prudential Life’s total premium and net profit has risen at a CAGR of 8 per cent and 5 per cent in the past four years, respectively. For more information on ICICI Prudential IPO please read "ICICI Pru Life IPO the new hot cake in the market" and "SEBI agrees for ICICI prudential IPO."
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Author: Bappaditta Jana

Bappaditta Jana

Member since: Jun 26, 2016
Published articles: 280

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