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Business News/ Market / Stock-market-news/  ICICI Prudential’s Rs6,000 crore IPO to open today
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ICICI Prudential’s Rs6,000 crore IPO to open today

ICICI Prudential Life Insurance's IPO is the first public offer by an insurer in Indian market, where the stock will be offered in a price band of Rs300-334 per share

Ahead of the IPO, ICICI Prudential has allocated over 4.89 crore shares at Rs334, the top-end of the price band, aggregating Rs1,635.33 crore to a clutch of anchor investors from India and abroad.Premium
Ahead of the IPO, ICICI Prudential has allocated over 4.89 crore shares at Rs334, the top-end of the price band, aggregating Rs1,635.33 crore to a clutch of anchor investors from India and abroad.

New Delhi: ICICI Prudential Life Insurance’s IPO, worth up to Rs6,057 crore and biggest for Indian markets in about six years, will hit the capital market on Monday.

The first public offer by an insurer in Indian market would open for bidding on 19 September and is scheduled to close on 21 September, during which the stock would be offered in a price band of Rs300-334 per share.

Ahead of the IPO, ICICI Prudential has allocated over 4.89 crore shares at Rs334, the top-end of the price band, aggregating Rs1,635.33 crore to a clutch of anchor investors from India and abroad. It marks one of the biggest anchor investor placements in the Indian IPO market. Among the 40-odd anchor investors are Morgan Stanley, Goldman Sachs, Nomura, Government Of Singapore, UTI MF, Russell Investment, GMO Emerging, SBI MF, Tata MF, HDFC Standard Life, Reliance, Birla Sun Life, Kotak Mahindra, IDFC,National Pension Service Managed By Oaktree Capital Management LP and The Boeing Company Employee Retirement Plans Master Trust.

The public offer comprises of up to 18,13,41,058 equity shares of ICICI Prudential Life Insurance Company, including a reservation of up to 1,81,34,105 equity shares (10% of the offer) for the shareholders of ICICI Bank. The offer would constitute 12.63% of the company’s post-offer paid-up equity share capital. At the upper end of the price band, the offer would be worth Rs6,057 crore. This would be the biggest initial public offering after Coal India.

The state-run firm had hit the capital markets in 2010 to raise over Rs15,000 crore. The company, which filed the draft red herring prospectus with the Securities and Exchange Board of India (Sebi) on 18 July, got the regulator’s go-ahead on 2 September. The insurer is a venture between banking major ICICI Bank and UK’s Prudential Corporation Holdings. Singapore’s Temasek and PremjiInvest also are shareholders.

ICICI Bank has around 68% stake in the insurer, while Prudential has 26%. Last November, ICICI Bank sold nearly 6% stake in ICICI Prudential to Temasek and PremjiInvest. The shares were offloaded for around Rs1,950 crore valuing the insurer at Rs32,500 crore. PremjiInvest holds 4% in the insurance company while Temasek owns 2% in the firm. At the end of March this year, the assets under management of ICICI Prudential—which started operations in fiscal year 2001—stood at Rs1,039.39 billion, as per its website.

Bank of America Merrill Lynch and ICICI Securities are global coordinators and book running lead managers to the issue. Others are CLSA, Deutsche, Edelweiss, HSBC, IIFL, JM Financial, SBI Capital Markets and UBS.

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Published: 18 Sep 2016, 03:45 PM IST
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