ICICI Bank is launching an IPO of ICICI Prudential Life next week. In an interview with ET Now Chanda Kochhar, CEO, ICICI Bank said, “Life Insurance is ICICI Bank’s largest subsidiary company and it deserves to be listed. We are ready to launch IPO.” She further said, “we always intended to divest stake in subsidiaries over medium to long term”. With this IPO, about 19 per cent of stock will be open stock, and we have three years to increase it to 25 per cent. Kochhar also added that utilisation of IPO proceeds will be decided by the board post consultation. “Our Life Insurance business is the market leader within private players from 2002-2016 and its persistency ratio has been going up,” she added.
In 2015-16, ICICI Prudential Life total premium stood at Rs 19,164 crore, the persistency ratio of the company was 82.4 per cent, the highest in the sector, AUM was at Rs 1.09 trillion. The total expenses of the entity is one of the lowest at 14.6 per cent. The overall market share of the company was 11.3 per cent on retail weighted received premium in FY16. ICICI Prudential Life Insurance has priced its IPO aimed at raising Rs 6,057 crore, 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. The issue has reserved 1.81 crore shares for shareholders of ICICI Bank. Bids can be made for a minimum of 44 equity shares and in multiples of 44 shares thereafter.