Mumbai: The initial public offering (IPO) of ICICI Prudential Life Insurance Co. Ltd, excluding the anchor book, was subscribed 51.96% on Tuesday, the second of the three-day offering. Through the public issue, which will close on Wednesday, parent company ICICI Bank Ltd is looking to trim 12.63% stake and raise about Rs6,056 crore.

As of 5:30pm on Tuesday, the IPO received applications for 68.78 million shares against 132.37 million shares, stock exchange data showed. The institutional investor category was subscribed 59.16%, while the non-institutional category comprising high-net-worth individuals was subscribed 14.95% or 0.15 times.

Retail investors, whose investments cannot exceed Rs2 lakh per individual, subscribed to 65.08% of the 57.12 million shares on offer, data showed.

The portion reserved for shareholders was subscribed 47.61%. This portion is for existing ICICI Bank shareholders as on 7 September and looking to bid additional shares apart from their original applications.

ICICI Bank Ltd on Friday raised Rs1,635.33 crore by selling shares as part of the Rs6,056 crore public issue. India’s largest private sector bank by asset size sold 48.96 million ICICI Prudential Life shares to institutional investors via an anchor allotment. The sale took place at Rs334 per share, the upper end of the Rs300-334 price band for the IPO.

Also Read: ICICI Prudential Life’s IPO draws 16% bids on Day 1

At the upper end, ICICI Prudential Life will be valued at Rs47,955 crore.

The anchor book is the portion of the IPO that bankers allot to institutional investors on a discretionary basis. Anchor book subscription opens a day before the launch of an IPO and acts as an indicator of institutional investor interest. Investors in the anchor book have to remain locked-in for 30 days from the allotment.

In the grey market on Tuesday, the premium on the each share of ICICI Prudential Life reduced to Rs14-18 per share from a premium of Rs20-22 per share on Monday. Premium had touched a level of Rs25-26 that was seen over the weekend, said two dealers on condition of anonymity.

Grey market is an over-the-counter (OTC) market where IPO shares are bought and sold before officially listing on a stock exchange. In the unofficial market, three parties are involved. The financier gives money to an investor to apply for the IPOs. The investor or “applicant" uses his PAN card (proof that he is assessed for income tax), Demat account (electronic account where shares are held in dematerialized form, a must for stock market transactions) and a bank account, and is paid a fee for making such applications. Then, an interested buyer gets the shares transferred to his account after the shares are listed.

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