ICICI Prudential Life Insurance has received the approval of market regulator Securities and Exchange Board of India (Sebi) for its initial public offering (IPO) through which it expects to raise approximately R5,000 crore. The company had filed its draft red herring prospectus with Sebi on July 18 this year.
ICICI Prudential is a joint venture between private lender ICICI Bank and the UK’s Prudential Corporation Holdings who have stakes of 68% and 26% in the company respectively. Prudential Life Insurance Company will not be diluting its stake and ICICI Bank will be selling 12.65 % of its shareholding.
The issue has reserved 1,81,34,105 equity shares of face value of R10 each for shareholders of ICICI Bank according to the draft papers. ICICI Prudential ended 2016 with net profit of R250.91 crore against R 45.75 crore last year.
Bank of America Merrill Lynch, ICICI Securities, Deutsche Equities India Private, Edelweiss Capital, 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 Wednesday, shares of ICICI Bank closed at R278.15, up 2.09% or 5.70 points on BSE.
Indian companies have raised R11,936.50 crore through IPOs in 2016 so far, according to Prime Data Base. The year so far saw 17 corporates making their debut on the exchanges. In 2015, the total money raised via IPOs was R13,614 crore, an increase of over 1033.61% from 2014. Total money raised in 2014 through IPOs was R1,200.94 crore.