 "Listing of life insurance business a boost for ICICI Bank")
ICICI Prudential Life Insurance Company on Monday filed draft papers with markets regulator Sebi (Securities and Exchange Board of India) to raise an estimated Rs 5,000 crore, the first by an insurer in India and the biggest in nearly six years.
The insurer is a venture between banking major ICICI Bank and UK's Prudential Corporation Holdings. Singapore's Temasek and PremjiInvest are also shareholders.
ICICI Bank has around 68 per cent stake in the insurer while Prudential has 26 per cent.
The public offer comprises up to 181,341,058 equity shares of ICICI Prudential Life Insurance Company, representing about 12.65 per cent of its equity share capital for cash, through an offer for sale by ICICI Bank, going by the draft papers.
The offer includes a proposed reservation of up to 18,134,105 equity shares (10 per cent of the offer) for shareholders of ICICI Bank.
The size of the IPO is estimated to be worth around Rs 5,000 crore, sources said.
Last November, ICICI Bank sold nearly six 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.
This would be the biggest initial public offering of shares after that of Coal India. The state-run firm had hit the capital markets in 2010 to raise over Rs 15,000 crore.
At the end of March this year, the assets under management of ICICI Prudential — which started operations in financial year 2001 — stood at Rs 1,03,939 crore, going by its website.
Bank of America Merrill Lynch and ICICI Securities are global book-running lead merchant bankers (BRLM) to the issue.
Others are CLSA, Deutsche, Edelweiss, HSBC, IIFL, JM Financial, and SBI Capital Markets.
A maximum 50 per cent of the issue size will be reserved for qualified institutional buyers (QIBs), of which up to 60 per cent for anchor investors, and five per cent for mutual funds.
Besides, 35 per cent of the total offer size will be set aside for retail (small) investors, with the remaining 15 per cent for non-institutional investors.
Prudential Corp Holdings will not dilute its stake in the IPO of ICICI Prudential Life Insurance Company while ICICI Bank will be selling its 12.65 per cent stake in the insurer.
Among other stakeholders, PremjiInvest held four per cent in the insurance company while Temasek owned two per cent in the firm.
ICICI Bank has an asset base of Rs 7.2 lakh crore while ICICI Prudential Life Insurance Company has assets under management (AUM) of Rs 1,039.4 billion for 2015-16. Besides, the insurer has recorded a premium of Rs 49.68 billion during the period.
The company has a consistent dividend payments policy since 2011-12.
