After OFS issue, total promoter shareholding is expected to fall tad below 75 percent
ICICI Prudential Life Insurance Company shares rallied 9 percent to close at Rs 349.10 on March 27 after its offer for sale issue by promoters received an overwhelming response from non-retail investors.
The offer for sale issue was oversubscribed 3.96 times on March 26, the first day of subscription that opened only for non-retail investors.
The issue received bids for 21,12,42,912 equity shares against OFS size of 5,32,67,605 equity shares.
"Clearing price of Rs 321.30 is fixed for the non-retail bidding in ICICI Prudential Life Insurance Company," as per information available on the exchanges.
On the second day, which is March 27, the issue is opened for non-retail as well as retail investors.
Of total issue size, 53,26,761 shares are reserved for retail investors and the rest is for non-retail investors.
Total promoter shareholding in ICICI Prudential stood at 78.69 percent as of December 2018, including 25.82 percent holding by Prudential Corporation Holdings Limited and the rest is held by ICICI Bank.
The stake sale through OFS is to meet SEBI's minimum shareholding norm, which said public shareholding in any company should be minimum 25 percent.Hence, after OFS issue, total promoter shareholding is expected to fall tad below 75 percent.