New Delhi: ICICI Prudential Life Insurance, ahead of its mega IPO of Rs 6,057 crore, is believed to have allotted shares worth Rs 1,635 crore to a clutch of anchor investors from India and abroad, including Singapore Government, Nomura and a pension trust for Boeing employees.
ICICI Bank has around 68% stake in ICICI Prudential Life Insurance, while UK’s Prudential has 26 per cent. Singapore’s Temasek and PremjiInvest also are shareholders.
The public offer is considered to be the largest IPO in the Indian markets during the past six years and the first-ever by an insurer in the country; The mega IPO is scheduled to be open for bidding on September 19 and will close on September 21, during which shares would be offered in a price band of Rs 300-334 per share. Shares have been allotted to the anchor investors at the top-end of the price band and marks one of the biggest anchor investor placements in the Indian IPO market.
The anchor investors are believed to have included Government Of Singapore, Nomura, Monetary Authority Of Singapore, National Pension Service Managed By Oaktree Capital Management LP, The Boeing Company Employee Retirement Plans Master Trust, Russell Emerging Markets Funds, Oaktree Emerging Markets, Pggm World Equity Ii BV and National Westminster Bank Plc as trustee of the Jupiter India Fund.
The investors also included Goldman Sachs, Morgan Stanley, Copthall Mauritius Investment Limited, Integrated Core Strategies Asia Pte Ltd, as also DSP Blackrock, Chennai 2007, GMO Funds, HDFC Standard Life Insurance, Rochdale Emerging Markets, Legg Mason Western Asset Asian Enterprise Trust, Wasatch Global Opportunities Fund, as also various mutual fund schemes of Tata MF, Reliance MF, UTI MF, SBI MF, Birla Sunlife, L&T MF, IDFC MF, Kotak Mahindra MF, Sundaram Mutual Fund and Edelweiss Mutual Fund.
The public offer comprises up to 18,13,41,058 equity shares of ICICI Prudential Life Insurance Company, including a reservation of up to 1,81,34,105 equity shares (10 per cent of the offer) for the shareholders of ICICI Bank. The offer would constitute 12.63 per cent of the company’s post-offer paid-up equity share capital, being . At the upper end of the price band, the offer would be worth Rs 6,057 crore. This would be the biggest initial public offering after Coal India. The state-run firm had hit the capital markets in 2010 to raise over Rs 15,000 crore.
The company, which filed the draft red herring prospectus with the Securities and Exchange Board of India (SEBI) on July 18, got the regulator’s go-ahead on September 2. The insurer is a venture between banking major ICICI Bank and UK’s Prudential Corporation Holdings. Singapore’s Temasek and PremjiInvest also are shareholders. ICICI Bank has around 68 per cent stake in the insurer, while Prudential has 26 per cent. 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. PremjiInvest holds four per cent in the insurance company, while Temasek owns two per cent in the firm. At the end of March this year, the assets under management of ICICI Prudential which started operations in fiscal year 2001 stood at Rs 1,039.39 billion, as per its website. Bank of America Merrill Lynch and ICICI Securities are global coordinators and book running lead managers to the issue. Others are CLSA, Deutsche, Edelweiss, HSBC, IIFL, JM Financial, SBI Capital Markets and UBS.