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Tuesday, July 19, 2016

ICICI Pru IPO to raise Rs 5,000 crore

It's the first initial public offer from the insurance industry

India's largest private life insurance company ICICI Prudential Life Insurance Company has filed the draft red herring prospectus with market regulator Sebi to raise around Rs 5,000 crore though an initial public offer.

Private lender ICICI Bank informed stock exchanges on Monday that it is diluting approximately 12.65 per cent of its equity share (selling 18.13 crore shares) in its life insurance subsidiary through an offer for sale. The foreign joint venture partner Prudential Corp Holdings (PCHL) of Britain that owns 25.88 per cent in the insurance company will not be selling any stake.

According to the draft red herring prospectus, as on March 31, 2016 ICICI Bank held 67.64 per cent, Prudential held 25.88 per cent, Azim Premji had 4.01 per cent stake, Compassvalve Investments, an indirect wholly-owned subsidiary of the Singapore-based investment company Temasek, owned 2 per cent, senior executives of the life insurance company held the remaining 0.09 per cent stake.

The proceeds from the sale will go to ICICI Bank.

This is the first IPO from the insurance industry and the largest from the financial sector in a decade. ICICI Bank is India’s largest private sector bank in terms of total assets with an asset base of Rs 7.2 lakh crore.

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