ICICI Prudential Life’s IPO subscribed 51% by day two

With 132.4m shares put up for sale, this is the largest IPO in the country for the past six years

Insurance News

By Gabriel Olano

The initial public offering of ICICI Prudential Life Insurance, the largest in India for the past six years, has attracted bids for 68.7 million out of 132.4 million shares, or 51.48%, as of the second day of its bidding process, which began on September 19.
According to data from the BSE and the NSE, retail investors have bid for 37.2 million shares, or 65% of the quota limit for retail shares. Non-institutional investor shares have been subscribed to 14.89%, while those for QIBs were subscribed 69.64%.
In reference to the increase, Reliance Securities, a major stock brokerage stated: “ICICI Pru Life has delivered strong growth in total premiums and new business premiums in the last three years with healthy ROE in excess of 30%. It is focusing on increasing shareholders returns through sustained growth in the value of new business.”
The insurer’s IPO gathered over 500,000 applications from retail investors during the second day. In November 2015, ICICI Prudential sold a 6% stake to investors, including Azim Premji and Temasek Holdings for around US$291 million, valuing the company at around US$4.85 billion. At the upper end of the price band, the company could be worth US$7.16 billion.
As of March 31, 2016, Indian banking group ICICI held 67.6% of shares in the life insurer, while UK-based Prudential held 25.9%.

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