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ICICI Prudential Life Insurance Co. Ltd will hit the markets with its initial public offering (IPO) worth Rs 6,057 crore on 19 September, the first by an insurer in India and also the biggest in six years.[/caption]
ICICI Prudential Life Insurance Co. Ltd will hit the markets with its initial public offering (IPO) worth Rs 6,057 crore on 19 September, the first by an insurer in India and also the biggest in six years.
“The offer will open for subscription on September 19 and shall close on September 21,” ICICI Bank said in a BSE filing on Friday.
“We wish to inform you that the price band has been fixed between Rs300 to Rs334 per equity share,” it added.
The public offer comprises up to 181,341,058 equity shares of ICICI Prudential Life Insurance. The offer includes a reservation of up to 18,134,105 equity shares (10% of the offer) for the shareholders of ICICI Bank.
The offer would constitute 12.63% of the company’s post-offer paid-up equity share capital and the net offer shall constitute 11.37% of the post-offer paid-up equity share capital.
The company, which filed the draft red herring prospectus with capital market regulator Securities and Exchange Board of India (Sebi) on 18 July, got the approval on 2 September.
The insurer is a venture between banking major ICICI Bank and UK’s Prudential Corp. Holdings. Singapore’s Temasek and PremjiInvest are also shareholders. ICICI Bank has around 68% stake in the insurer, while Prudential has 26%.
This would be the biggest initial public offering after Coal India. The state-run firm had hit the capital markets in 2010 to raise over Rs15,000 crore.
Last November, ICICI Bank sold nearly 6% stake in ICICI Prudential to Temasek and PremjiInvest. The shares were offloaded for around Rs1,950 crore valuing the insurer at Rs32,500 crore. PremjiInvest holds 4% in the insurance company, while Temasek owns 2% in the firm.
At the end of March this year, the assets under management of ICICI Prudential—which started operations in fiscal year 2001—were Rs1,039.39 billion, as per its website. Bank of America Merrill Lynch and ICICI Securities are global coordinators and book-running lead managers to the issue. Others are CLSA, Deutsche, Edelweiss, HSBC, IIFL, JM Financial, SBI Capital Markets and UBS.