ICICI Prudential Life Insurance became the first insurance company to receive a Securities and Exchange Board of India (Sebi) approval to file initial public offerings (IPO) and raise approximately Rs 5,000 crore. This is the biggest IPO that will hit the market in nearly 6 years after Coal India that hit the capital markets on Oct 18, 2010 to raise over Rs 15,000 crore.
The company, which is a tie-up between banking major ICICI Bank and UK’s Prudential Corporation Holdings had filed Draft Red Herring Prospectus (DRHP) with the market regulator Sebi on July 18 this year.
Private lender ICICI Bank has 68 per cent stake, while Prudential holds 26 per cent stake in the insurance company. Among other significant shareholders, PremjiInvest has 4 per cent stake in the insurance company while Singapore’s Temasek owned 2 per cent. ICICI Bank will be selling its 12.65 per cent stake in ICICI Prudential Life Insurance, while Prudential Corp will be not selling its stake.
Bank of America Merrill Lynch, ICICI Securities, CITIC CLSA Securities, Deutsche Equities India Private Ltd, Edelweiss Financial Services, HSBC, IIFL, JM Financial, SBI Capital Markets, UBS are the global co-ordinators and book running lead managers for the upcoming public offer.
The proposed public includes 18,134,105 equity shares of face value of Rs 10 each for shareholders of ICICI Bank as per the draft papers.
For qualified institutional investors 50 per cent of the issue size will be reserved for qualified institutional buyers (QIBs). Around 8,16,03,476 equity shares will be allocated to QIBs including anchor investors. 35 per cent of total offer size will be set aside for retail investors, with the remaining 15 per cent for non-institutional investors.
Since the offer is an offer for sale and ICICI Prudential will not receive any proceeds from the offer and it is not appointing a monitoring agency for the offer.
For the year ended March 31, 2016, ICICI Prudential posted net profit of Rs 250.91 crore against Rs 45.75 crore last year. The insurer reported net loss of Rs 1,970.46 crore, Rs 1,168.52 crore and Rs 1,041.85 crore in FY12, FY13 and FY14, respectively.