The initial public offering (IPO) of ICICI Prudential Life Insurance was subscribed 0.52 times on Tuesday with investors bidding for 6.87 crore shares of the total 13.23 crore shares on offer.
ICICI Prudential Life Insurance has priced its initial public offering (IPO) aimed at raising Rs 6,057 crore — calculated at the upper end of the price band — between Rs 300 and Rs 334 per share. The IPO is entirely an offer for sale (OFS) of 18.1 crore equity shares of face value of Rs 10 each by ICICI Bank.
Qualified institutional buyers (QIBs) bid for 1.93 crore shares of the total 3.2 crore shares on offer, 0.59 times their quota. High net-worth (HNIs) individuals bid for 36.61 lakh shares of the 2.44 crore shares reserved for them or 0.15 times the quota. Retail investors bid for nearly 0.65 times of their quota or 3.71 crore shares of the 5.71 crore shares reserved for them. The issue has reserved 1.81 crore shares for shareholders of ICICI Bank, these shareholders bid for 86.3 lakh shares or 0.48 times of their quota.
On August 16, the company raised Rs 1,635.33 crore by allotting 4.89 crore shares to anchor investors at a price of Rs 334 apiece. Among the investors who were allotted shares in the pre IPO placement, include Government of Singapore, Nomura India Investment Fund Mother Fund, Goldman Sachs (Singapore), Morgan Stanley Mauritius Company and Tata Balanced Fund among others.
According to SEBI ICDR Regulations, the public shareholding or free float market capital of a listed company should be at least 25%. Incase of ICIC Prudential, the public share holding prior to listing was 6%. Through the IPO ICICI is divesting another 12.63%. Hence as on the day of listing the public shareholding would be close to 19%. The promoters including Prudential should divest another 6% in the next three years to abide the Sebi regulation.
In November last year, ICICI Bank had sold 6% stake in the life insurer to Azim Premji and Compassvale Investments which is an subsidiary of Temasek. As on March 31st 2016, Azim Premji holds 4% while Temasek gold remaining 2%. At that time deal was valued at Rs 32,500 crore.
For the year ending March 2016, the company reported an 8% increase in its total income at Rs 1,812.2 crore. During the same period, profit after tax (PAT) was up almost 460% at Rs 249.9 crore from the previous year’s Rs 44.6 crore. Bank of America Merrill Lynch, ICICI Securities, CLSA India Private, Deutsche Equities India Private, Edelweiss Financial Services, HSBC Securities, IIFL Holdings, JM Financial, SBI Capital Markets and UBS Securities are the global co-ordinators and book running lead managers for the issue. On Tuesday, shares of ICICI Bank closed at Rs 272, up 0.06% on BSE.