ICICI Bank Ltd. has decided to sell its stake in ICICI Prudential Life Co. Ltd., making it the country's first insurance company to file for an initial public offering (IPO)
The country's largest private sector insurer, made an offer for sale of 181,341,058 equity shares of face value Rs 10 each. The company has reserved up to 10 percent of the issue for shareholders of ICICI Bank.
The price band and the date of the IPO have not yet been disclosed.
The company has reserved up to 50 percent of the issue for qualified institutional buyers (QIB), up to 15 percent for high networth individuals (HNIs) and around 35 percent for retail Investors.
The company will be listed on the National Stock Exchange and the Bombay Stock Exchange. ICICI has appointed ten lead managers to conduct the share sale, including Bank of America Merrill Lynch, CLSA, Deutsche Equities, HSBC Securities and Capital Markets, ICICI Securities, SBI Capital Markets, among others.
ICICI Prudential Life has a networth of approximately Rs 5,320 crore. Its total revenue has risen at a compounded annual growth rate (CAGR) of 8 percent to Rs 18,998.7 crore in financial year 2015-16. The company's net profit stood at Rs 1,652.72 crore, growing at a CAGR of 4.5 percent.
It is a joint venture between ICICI Bank and Prudential plc, a financial services company based in the U.K.
ICICI Bank holds 67.62 percent stake in the company while Prudential Plc owns the remaining 25.87 percent.
According to the draft red herring prospectus, the Indian life insurance sector is the fifth largest insurance market in Asia with a size of 3.7 trillion and is expected to grow at a CAGR of 11-13 percent over the next five years.
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