India's largest private life insurer ICICI Prudential Life Insurance hit the capital market today with an initial public offer (IPO). The IPO, first by any life insurance company in India, will raise Rs 6,057 crore which is the biggest for Indian markets in about six years.
The IPO is opening today and is scheduled to close on September 21.
Here are 10 things to know about ICICI Prudential Life Insurance IPO:
1. During the three days of offering (September 19-21), the IPO would be offered in a price band of Rs 300-334 per share.
2. Ahead of the IPO, ICICI Prudential has allocated over 4.89 crore shares at Rs 334, the top-end of the price band, aggregating Rs 1,635.33 crore to a clutch of anchor investors from India and abroad. It marks one of the biggest anchor investor placements in the Indian IPO market.
3. Among the 40-odd anchor investors are Morgan Stanley, Goldman Sachs, Nomura, Government Of Singapore, UTI MF, Russell Investment, GMO Emerging, SBI MF, Tata MF, HDFC Standard Life, Reliance, Birla Sun Life, Kotak Mahindra, IDFC,National Pension Service Managed By Oaktree Capital Management L P and The Boeing Company Employee Retirement Plans Master Trust.
4. The offer would constitute 12.63 per cent of the company's post-offer paid-up equity share capital. At the upper end of the price band, the offer would be worth Rs 6,057 crore.
5. This would be the biggest initial public offering after Coal India Limited. The CIL had hit the capital markets in 2010 to raise over Rs 15,000 crore.
6. The insurer is a venture between banking major ICICI Bank and UK's Prudential Corporation Holdings. Singapore's Temasek and PremjiInvest also are shareholders.
7. ICICI Bank has around 68 per cent stake in the insurer, while Prudential has 26 per cent. At the end of March this year, the assets under management of ICICI Prudential - which started operations in fiscal year 2001 - stood at Rs 1,039.39 billion, as per its website.
8. The IPO is an offer for sale by ICICI Bank, meaning the bank is offloading part of its shareholding in the insuarance company. ICICI Bank's stake in ICICI Prudential will come down to around 55 per cent after the IPO.
9. The public offer comprises of up to 18,13,41,058 equity shares of ICICI Prudential Life Insurance Company, including a reservation of up to 1,81,34,105 equity shares (10 per cent of the offer) for the shareholders of ICICI Bank.
10. Post allocation to the anchor investors, more than 132 million shares will be available for subscription in the offer. In the net offer, 57,122,434 shares will be available for subscription by retail investors.