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ICICI Pru Life Insurance shares to be listed on

29th September
Lately the shares of ICICI Prudential Life Company Ltd.
(ICICI Pru), hit the market with its initial public offering
(IPO) which is going to be listed on the stock exchanges
on September 29. The company had set Rs.18.13 crore
shares at a price band of Rs. 300-334 per share while the
issue price has been fixed at Rs. 334 per share.
Indias largest private sector insurer had raised Rs 1,635
crore from anchor investors as they sold 48.96 million at
the upper end of the price band from institutional
investors. The upper end of the price band shows an implied market capitalization of
Rs. 47,940 crore for the company. After the issue, the share of the insurer's
promoters will slip down to 88.6 per cent from the current 100 percent. The initial
public offering (IPO) of ICICI Prudential Life Insurance today settled with 10.47 times
subscription for shares offered to the public.
ALSO READ | ICICI Prudential Life Insurance IPO Oversubscribed 4 times
ICICI Prudential Life Insurance
Company is a joint venture
between private sector lender
ICICI Bank and British insurance
company Prudential Corporate
Holdings. ICICI Bank share price is
quoting 0.42 per cent higher at Rs.
261.10 on the NSE on 27th
September. The offer got bids for
more than 138 crore shares in 3
days against nearly 13.24 crore
shares on sale. The quota for retail
investors received bids for nearly
8 crore shares, a subscription of
1.39 times.

The reserved portion for non-institutional investors saw bids for over 69 crore
shares, a subscription of nearly 28.55 times, whereas the sector for qualified
institutional buyers was subscribed approximately 12 times. The allocated portion
for the shareholders of ICICI Bank was subscribed over 12 times. The float raise
around Rs 6,057 crore at the upper end of the price band of Rs 330-334 per share,
turning it to be the biggest IPO after Coal India that hit the capital markets in 2010 to
raise over Rs 15,000 crore.
ALSO READ | ICICI Pru Life IPO the new hot cake in the market
The India life insurance sector happens to be the 10th largest life insurance market in
the world and the 5th largest in Asia. There are around 24 life insurance companies in
India, which includes the Life Insurance Corporation of India (LIC), the state-run
entity. The private sector has shown significant growth since 2000 and it accounted
for 51.5 per cent of the life insurance sector, on an RWRP basis, in financial year
2016. Foreign insurance companies can hold up to 49 per cent stake in Indian
insurance firms, up from the earlier limit of 26 per cent.
The insurance penetration levels are low in India as compared to its peers in the rest
of Asia. India is still an under-penetrated insurance market with a life insurance
penetration of 2.7 per cent in financial year 2015, as compared to 3.7 per cent in
Thailand, 7.3 per cent in South Korea and a worldwide average of 3.5 per cent in
2015. At US$43 in financial year 2015, the insurance density in India also stayed very
low as compared to other developed and emerging market economies.

Disclaimer
The investment advice or guidance provided by way of recommendations, reports or other ways are solely the personal views of the
research team. Users are advised to use the data for the purpose of information and rely on their own judgment while making
investment decision.
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Answers to the Best of our knowledge and belief of Dynamic/ its Associates/ Research Analyst: DYNAMIC/its Associates/ Research
Analyst/ his Relative:

Do not have any financial interest / any actual/beneficial ownership in the subject company.
Do not have any other material conflict of interest at the time of publication of the research report
Have not received any compensation from the subject company in the past twelve months
Have not managed or co-managed public offering of securities for the subject company.
Have not received any compensation for brokerage services or any products / services or any compensation or other
benefits from the subject company, nor engaged in market making activity for the subject company
Have not served as an officer, director or employee of the subject company

Article Written by
Madhurima Chowdhury