India: ICICI Prudential Life's IPO attracts 10x subscription rate
Source: Asia Insurance Review | Oct 2016
ICICI Prudential Life’s IPO, the first-ever by an insurance company in India, was subscribed by 10.4 times by the 21 September deadline for applications. The IPO received bids for nearly 1.38 billion shares, when 132 million shares were on offer to the public.
In the fundraising exercise, ICICI Bank, the parent company of the life insurer, offered a total of 181.34 million shares. Anchor investors were alloted 48.96 million shares on 16 September, with funds raised of INR1,635 crore (US$244 million).
At the upper limit of the price band of INR300-334, the insurer would fetch about INR6,057 crore, which would be the biggest IPO in India since Coal India’s in 2010.
Incorporated at Mumbai in July 2000, ICIC Prudential Life Insurance is a joint venture between India’s biggest private-sector lender ICICI Bank and British insurance firm Prudential. Before the IPO, the bank held a 67.52% stake in the company and Prudential, 25.83%.