ICICI Prudential Life Insurance makes a tepid debut to slip 5% against issue price

ICICI Prudential Life Insurance, the first Indian insurer to get listed on stock exchanges, made a tepid debut to list with a discount of 1.5 per cent against its issue price.

By BT Online  
Thursday, September 29, 2016

ICICI Prudential Life Insurance, the first Indian insurer to get listed on stock exchanges, made a tepid debut to list with a discount of 1.5 per cent against its issue price (Rs 334) at Rs 329 on BSE. On NSE, the stock got listed at Rs 330 per share.

ICICI Pru slipped as much as 5.49 per cent to Rs 315.65 against its offer price on the BSE. On NSE, the stock hit an intraday low of Rs 315.40.

The company's Rs 6,057-crore IPO was oversubscribed 10 times. The quota set aside for qualified institutional buyers was subscribed 11.83 times while for the non-institutional investor category, it was 28.55 times. The retail portion was oversubscribed 1.37 times.

The public offer comprises up to 18,13,41,058 shares of ICICI Prudential Life Insurance Company, including reservation of up to 1,81,34,105 (10 per cent of the offer) for shareholders of ICICI Bank. The offer was open to subscription during September 19-21.

The price band was fixed at Rs 300-334 per share. At the upper end of the price band, the offer is worth Rs 6,057 crore.

This was the biggest initial public offering after Coal India, which had hit the capital markets in 2010 to raise over Rs 15,000 crore.

The insurer is a venture between banking major ICICI Bank and UK's Prudential Corporation Holdings. Singapore's Temasek and PremjiInvest are also the shareholders.

ICICI Bank has around 68 per cent stake in the insurer while Prudential has 26 per cent. PremjiInvest holds 4 per cent in the insurance company while Temasek owns 2 per cent.

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