ICICI Prudential Life Insurance IPO

Oversubscribed 4 times
The IPO of ICICI Prudential Life Insurance Company for Rs 6,057
crores has already oversubscribed more than 4 times on the last
day of subscription, 21st September 2016, Wednesday. The
reserved portion of the qualified institutional buyers
oversubscribed about 6.88 times and the non institutional
investors' category 9.54 times, sources familiar with the IPO
The reserved category of the retail investors subscribed around
1.1 times while shareholders' portion was close to 3 times. It is an
offer for sale by ICICI Bank. Therefore, the company will not get any issue proceeds. It is the
largest Initial Public Offer in the last six years after Coal India's Rs 15,000 crores public issue.
ICICI Prudential is the largest private sector life insurer by total premium and assets under
management in Financial Year 2016. It aims to raise around Rs 5,440 to 6,057 crores through
this 18.13 crores public issue at a price band of Rs 300 to 334 per share, respectively.
Incorporated at Mumbai in the month July of 2000, ICICI Prudential Life already raised Rs 1,635
crores through anchor investors' portion on Friday, the day before opening of the issue.
ICICI Prudential Life is a joint venture between India's largest private sector lender ICICI Bank
and Prudential Corporation Holdings, which is a part of the UK-based Prudential Group. Before
the issue, ICICI Bank held 67.52 per cent stake and Prudential Corporation Holdings 25.83 per
cent stake in the company.
Hasham Traders, which is owned by Azim Premji, held 4 per cent stake in the insurance company
and Compassvale Investments, an indirectly wholly owned subsidiary of Temasek, has 2 per cent
shareholding. The shareholding of India's largest private sector lender will be reduced to around
55 per cent after the issue.
The equity shares are proposed to be listed on the National Stock Exchange and the Bombay
Stock Exchange. The Global book running lead managers to the offer are DSP Merrill Lynch and
ICICI Securities. The book running lead managers are JM Financial Institutional Securities,
Edelweiss Financial Services, CLSA India, Deutsche Equities India, HSBC Securities & Capital
Markets (India), IIFL Holdings, SBI Capital Markets as well as UBS Securities India.

At the end of FY16, ICICI Prudential was the biggest private sector insurer in the Country having
a market share of 11.3 per cent. The company has 521 offices with around 10,663 employees and
1,21,016 advisors all over India as of Financial Year 2016. ICICI Prudential Life’s total premium
and net profit has risen at a CAGR of 8 per cent and 5 per cent in the past four years, respectively.

For more information on ICICI Prudential IPO please read “ICICI Pru Life IPO the new hot cake in
the market” and “SEBI agrees for ICICI prudential IPO.”

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Article Written by
Nabarupa Kanjilal