ICICI Prudential Life Insurance IPO: India’s second biggest Initial Public Offering (IPO) has been announced by the Indian multinational banking and financial services company Industrial Credit and Investment Corporation of India (ICICI).
Starting from September 19th, 2016 the open bidding will take place for three days to raise funds worth Rs.6,057 crores. The IPO ends on September 21st, 2016.
The price of each share will range between Rs.300 and Rs.334. The top price shares are already allocated to the 40-odd anchor investors in India and abroad. The worth of Rs.4.89 crore shares aggregates to Rs. 1,635.33 crores.
Apart from this 10% of the IPO declared shares are reserved for ICICI shareholders who count to 1,81,34,105 equity shares.
A Total of 18,13,41,058 equity shares of ICICI Prudential Life Insurance Company is being announced for open bidding. This offer would constitute 12.63% of the company’s post-offer paid-up equity share capital.
The announcement is the second biggest IPO announcement after the Central government’s Coal India IPO announced in the year 2010. That is the first largest IPO which raised the funds of Rs.15,000 crores.
After getting approval from SEBI (Securities and Exchange Board of India) on July 18th, 2016, the ICICI Prudential Life Insurance Company has got the regulators permission on September 2nd, 2016 for announcing IPO.
Bank of America Merrill Lynch, a corporate and investment banking division of Bank of America and ICICI Securities are the book running lead managers and global coordinators to this issue.
Both international and domestic institutions as long-term investors have responded tremendously in the anchor book. GIC ( the investment arm of Government of Singapore) is the largest applicant as a foreign institution whereas UTI MF was the largest bidder domestically.
Morgan Stanley, 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, Goldman Sachs, and The Boeing Company Employee Retirement Plans Master Trust are some of the anchor investing companies.
More than 132 million shares are available for subscription in the offer for the anchor investors, and 57,122,434 shares will be available for retail investors for a subscription.