ICICI Prudential IPO oversubscribed 10 times

Shares on offer for public got subscription worth `46,298 cr

FIRST IPO BY AN INDIAN INSURANCE FIRM

ICICI PRUDENTIAL Life Insurance’s Rs 6,000-crore initial public offer (IPO), the first by an insurance company in India, on Wednesday closed with over 10times subscription for shares offered to the public.

The shares on offer for the public got subscription worth Rs 46,298 crore, which, along with shares worth Rs 1,635 crore already allocated to anchor investors, have taken the total bid amount to Rs 47,933 crore. The IPO received bids for 138.58 crore shares against the total issue size of 13.23,78 crore shares, as per data available with the NSE.

The quota set aside for qualified institutional buyers (QIBS) was oversubscribed 11.83 times, while for non-institutional investors category it was 28.55 times. The retail portion was oversubscribed 1.37 times and ICICI Bank shareholders 12.20 times.

The shares were offered in a price band of Rs 300-334 per share. It 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. 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 is worth Rs 6,057 crore. This is the biggest initial public offering after Coal India, which had hit the capital markets in 2010 to raise over Rs 15,000 crore. ICICI Bank has around 68 per cent stake in the insurer, while Prudential has 26 per cent. In November 2015, ICICI Bank sold nearly 6 per cent stake in ICICI Prudential to Temasek and Premjiinvest. The shares were offloaded for around Rs 1,950 crore, valuing the insurer at Rs 32,500 crore.

Along with shares worth Rs 1,635 crore already allocated to anchor investors, the total bid amount has reached Rs 47,933 crore