The biggest initial public offering (IPO) in nearly six years of ICICI Prudential Life Insurance, began on Monday, with investors bidding for 4.08 lakh shares within the first 10 minutes of the bidding process. As reported by ET, the issue has 0.30% subscription against the issue size of 13.23 crore shares and retail institutional investors bade for 1.57 shares, while non-institutional investors 2.31 lakh shares.
On Friday, the insurer had allotted ₹1,635 crore worth of shares to anchor investors and at the upper limit of the price band ₹300-334, it would fetch ₹4,419 crore from the share sale.
The company would value at about ₹48,000 crore (at upper limit of price band) after the anchor allotment, it would fetch about ₹6,000 crore, which would be the biggest IPO in India since Coal India’s in 2010
“If were an investor in ICICI Prudential Life, I do not think I would put my money for listing gains because what you are buying is a very strong company and not a stock which is under priced. So if you are buying a very strong company, the real returns comes only when you can hold it for a longer duration and not look for listing gains,” said Santosh Singh, BFSI & Head Research, Haitong Securities.
Earlier in November 2015, ICICI Prudential had sold 6% of its stake to investors such as Azim Premji and Temasek Holdings for₹1,950 crore, valuing the company at ₹32,500 crore.
The offer would comprise 12.63% of total post-paid equity share capital of the company. As of March 31, ICICI Bank held a 67.6% stake in the life insurance firm, while Prudential Corp Holdings (PCHL) held 25.9%. ICICI Bank will sell its stake in the IPO, without diluting any of its holding.