ICICI Bank Ltd.'s subsidiary, ICICI Prudential Life Insurance Company Ltd., has fixed the price band for its initial public offer at Rs 300-334 per equity share. The offer will open for subscription on Monday, September 19 and close on Wednesday, September 21, the company said in a filing on stock exchanges.
It is the country's first insurance company to file for an IPO. 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, according to the company's draft red herring prospectus (DRHP).
The company will be listed on the National Stock Exchange and the Bombay Stock Exchange, post the public offer, the regulatory filing said.
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. Net profit stood at Rs 1,652.72 crore, growing at a CAGR of 4.5 percent, the company said in its DRHP.
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.
Also Read: Employees Of ICICI Prudential Life Insurance Rush To Offload Stock Options Ahead Of IPO
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