Price band for ICICI Prudential Life IPO has been fixed at INR300 – 334 per share. The upcoming IPO will open for subscription on 19 September and close on 21 September, the company’s parent ICICI Bank said in a stock exchange filing. Through ICICI Prudential IPO, ICICI Bank plans to sell 181,341,058 equity shares or 12.65% through offer for sale (OFS) in the life insurance company. At the upper end of the price band, the IPO will generate INR6,056.7 crore (INR60.5 billion) for ICICI Bank.
The massive ICICI Prudential Life IPO – first insurance IPO in India – is also the biggest in six years after Coal India IPO in 2010. ICICI Bank has nearly 67.6% stake in the insurer and following the IPO, its shareholding is set to decline to around 55%. UK’s Prudential holds 26% equity stake in India’s most profitable private insurer and will not be selling any shares in the IPO. Azim Premji’s investment vehicle PremjiInvest owns 4% stake and will not be participating in the IPO. Singapore’s Temasek is also among investors in ICICI Prudential Life.
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The upcoming IPO will be managed by global coordinators and book running lead managers ICICI Securities Ltd and Bank of America Merrill Lynch. CLSA India, Deutsche Bank, Edelweiss Financial Services, HSBC, IIFL, JM Financial, SBI Capital Markets and UBS are the book running lead managers for the offer.
For the financial year ended 31 March 2016, ICICI Prudential Life posted revenues of INR18,998.7 crore (INR189.9 billion), marking a growth of 25.3% from the previous year. Its net profit during the latest year grew slightly to INR1,652.7 crore (INR16.5 billion).
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According to the company’s draft prospectus, ICICI Prudential Life’s market share among all insurance companies in India (public and private sector) stood at 11.3% in FY2016 on retail weighted received premium basis. On the same parameter, its market share among the 23 private insurers stood at 21.9%.
IPO Central will publish its analysis of the IPO in the coming days. Meanwhile, to know more details about the offer and what other investors think about ICICI Prudential Life IPO, refer to this page.