First insurance IPO to open on September 19, raise Rs 6,000 crore

The first initial public offering in India’s insurance sector, which opens on September 19, will also be the largest since Coal India’s stake sale in 2010

ICICI BankBSE 0.35 % plans to raise Rs 6,000 crore by selling a stake in subsidiary ICICI Pr udential Life Insurance Company , valuing the insurer at Rs 48,000 crore.

Over 18.13 crore shares will be available through an offer for sale, of which 10% is reserved for shareholders of ICICI Bank.

We have always articulated that over the medium to short term, we will list. We think such a large company with such a large market share in the insurance industry , in the rightness of all things, should be listed, Chanda Kochhar, managing director, ICICI Bank, said on Monday .

-The offer is equivalent to 12.63% of total post-paid equity share capital of the company.

Ten banks, including DSP Merrill Lynch and ICICI Securities, have been hired for the issue.

ICICI Bank, which owns a 68% stake in the company, will raise Rs 6,057 crore at the top end of the price band, making it the biggest IPO in the domestic market since Coal India’s stake sale in October 2010.

The company’s valuation has increased 50% since the previous deal. When ICICI Bank sold a 6% stake in ICICI Prudential to WiproBSE -0.85 % Chairman Azim Premji and the Singapore government’s inĀ ..

Valuation is part of the markets and bankers. If you see, margins have grown. Many things have changed, said Kochhar.

Over the next three years, the public shareholding in ICICI Prudential will widen to 25%, leaving ICICI Bank with 54% and Prudential with 20%.

Kochhar said work on the IPO started after the Insurance Regulatory & Development Authority issued listing guidelines in December 2015, following an amendment to the Insurance Act in March 2015.

ICICI Prudential Life has generated highest premium in terms of RWRP (retail weighted received premium) since 2002, said Kochhar.

The company has over Rs 1 lakh crore of assets under management. The embedded value of the company was Rs 13,939 crore as of March 31, 2016, and net profit was Rs 1,653 crore.

The offer will open for subscription to the public on September 19 and will close on September 21.The price band ranges from Rs 300 to Rs 334 per share.

Curated fromĀ First insurance IPO to open on September 19, raise Rs 6,000 crore

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