Moneycontrol Bureau
The Rs 6,057-crore IPO of ICICI Prudential Life Insurance Company has oversubscribed 10.48 times on Wednesday, the last day of subscription.The IPO has received bids for 138.77 crore equity shares against issue size of 13.23 crore shares (excluding anchor investors' portion), as per the data available on the exchange.These total bids are valued at Rs 47,737 crore, which is close to its market capitalisation at higher end of price band.
The reserved portion of qualified institutional buyers oversubscribed 11.83 times and the non-institutional investors' category 28.55 times.
The reserved category of retail investors oversubscribed 1.42 times and shareholders' 12.2 times.
It is an offer for sale by ICICI Bank. Hence, the company will not get any issue proceeds. It is the largest IPO in last six years after Coal India's Rs 15,000-crore public issue.
ICICI Prudential, the largest private sector life insurer by total premium and assets under management in FY16, aims to raise around Rs 5,440-6,057 crore through this 18.13 crore public issue at a price band of Rs 300-334 per share, respectively.
Incorporated at Mumbai in July 2000, ICICI Prudential Life already raised Rs 1,635 crore through anchor investors' portion on Friday, the day before issue opening.
ICICI Prudential Life is a joint venture between India's largest private sector lender ICICI Bank and Prudential Corporation Holdings, a part of the UK-based Prudential Group.
Before the issue, ICICI Bank held 67.52 percent stake and Prudential Corporation Holdings 25.83 percent stake in the company. Hasham Traders, owned by Azim Premji, held 4 percent stake in the insurance company and Compassvale Investments, an indirectly wholly owned subsidiary of Temasek, has 2 percent shareholding.
The shareholding of the country's largest private sector lender will be reduced to around 55 percent after the issue.
Equity shares are proposed to be listed on the NSE and BSE.
The Global book running lead managers to the offer are DSP Merrill Lynch and ICICI Securities. The book running lead managers are CLSA India, Deutsche Equities India, Edelweiss Financial Services, HSBC Securities & Capital Markets (India), IIFL Holdings, JM Financial Institutional Securities, SBI Capital Markets and UBS Securities India.
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