The initial public offering (IPO) of ICICI Prudential Life Insurance was subscribed 0.16 times (or 16 per cent) Monday, with investors bidding for 2.08 crore of the total 13.23 crore shares on offer.
ICICI Prudential Life Insurance has priced its IPO, aimed at raising Rs 6,057 crore at the upper end of the price band, between Rs 300 and Rs 334 per share. The IPO is entirely an offer for sale (OFS) of 18.1 crore equity shares of a face value of Rs 10 each by ICICI Bank.
Qualified institutional buyers (QIBs) bid for 19.17 lakh shares of the total 3.2 crore shares on offer, or 0.06 times their quota. High net worth (HNIs) individuals bid for 10.78 lakh shares of 2.44 crore shares reserved for them, or 0.04 times the quota. Retail investors bid for nearly 0.25 times of their quota or 1.42 crore shares of 5.71 crore shares reserved for them.
While the issue has reserved 1.81 crore shares for shareholders of ICICI Bank, these shareholders bid for 36.55 lakh shares or 0.2 times their quota.
On August 16, the company raised Rs 1,635.33 crore by allotting 4.89 crore shares to anchor investors at a price of Rs 334 apiece. Among the investors who were allotted shares in the pre-IPO placement include the government of Singapore, Nomura India Investment Fund Mother Fund, Goldman Sachs (Singapore), Morgan Stanley Mauritius Company and Tata Balanced Fund, among others.
According to Sebi ICDR regulations, the public shareholding or free float market capital of a listed company should be at least 25 per cent.
In case of ICICI Prudential, the public shareholding prior to listing was 6 per cent. Through the IPO, ICICI is divesting another 12.63 per cent. Hence as on the day of listing, the public shareholding would be close to 19 per cent. The promoters, including Prudential, should divest another 6 per cent in the next three years to abide by the Sebi regulation.
In November last year, ICICI Bank had sold 6 per cent stake in the life insurer to Azim Premji and Compassvale Investments, which is a subsidiary of Temasek.
As on March 31, 2016, Azim Premji held 4 per cent while Temasek Gold the remaining 2 per cent. At that time, the deal was valued at Rs 32,500 crore.
For the year ended March 2016, the company reported an 8 per cent increase in its total income to Rs 1,812.2 crore. FE