Ajcon global has come out with its report on ICICI Prudential Life Insurance company IPO. The research firm has recommended to "Subscribe" the IPO in its research report as on September 19 , 2016.
Incorporated in 2001, IPLCL is a JV between ICICI Bank (67.52%) and Prudential Corporation Holdings Limited (PCHL) (25.83%). PCHL is part of the Prudential Group that has GBP 509 bn of AUM. Other key investors include Azim Hasham Premji for M/s. Hasham Traders and Compassvale Investments Pte. Ltd. with a shareholding of 4.0% and 2.0% respectively. Today it is the largest private sector insurance player and the second largest overall, behind LIC, in terms of premium. Its market share in the industry is 11.3% and 21.9% amongst private players. In the last four fiscal’s, its Retail Weighted Received Premium (RWRP) has witnessed a CAGR of 15.2 percent which is one of the highest in industry with assets under management ~Rs. 1 lakh crore in FY16. It has Multi-tiered investment management structure with clearly defined roles and responsibilities. 94.2% of linked funds have performed better than their respective benchmarks since inception. 95.1% of debt portfolio comprised domestic AAA-rated instruments as at June 30, 2016. Unit linked products (ULIPs) accounted for 82.3 percent of the new business premium (NBP) FY16. On the other hand, high margin protection cover segment accounted for about 2.5 percent of NBP which is likely to increase going forward.
Objects of the issue
1) Achieve the benefits of listing the Equity Shares on stock exchanges
2) To carry out the sale of Equity Shares by the Selling Shareholder, ICICI Bank Limited (Total offering of up to 181,341,058 through
an offer for sale of equity shares - includes a reservation of up to 18,134,105 shares for purchase by ICICI Bank Shareholders)
3) Provide liquidity to the existing shareholders
4) Company will not receive any proceeds from the Offer
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