ICICI prudential life Insurance has hit the mega IPO of Rs. 6, 000 Crore today. It is the biggest IPO in last six years. With in just 10 mins 4.08 lakh shares have bid. Till now it has received 0.30% subscription against the issue size of 13.23 crore shares. According to the exchange data retail institutional investors have bade for 1.57 lakh shares and non-institutional investors have bade for 2.31 lakh shares.
As on Friday the insurer had allotted the shares worth Rs. 1, 635 crore. With the upper limit price band Rs. 300 to Rs. 334. It is expected that it will fetch Rs. 4, 419 crore from the sale of shares.
In total this IPO will fetch around Rs. 6, 000 crore, this will make it a biggest IPO in last six years. In 2010 Coal India had issued the IPO worth Rs. 48, 000 crore
According to the experts if you are investing in this IPO stay invested for a long period of time as you are buying stocks of a very strong company and not a stock of such company which is underpriced. So it is advisable that don’t just look for listing gains.
This is the first ever IPO in insurance industry in India. Before this, ICICI Prudential Life Insurance had sold its 6% stake in November 2015 to the renowned investors of India such as Azim Premji and Temasek Holdings. This stake was worth Rs. 1, 950 crore, and the valuation of the company was Rs. 32, 500 crore.
This IPO would consist of 12.63% post paid share capital of the company. And according to the data ICICI bank held 67.6% stake in Life insurance firm, whereas Prudential Corp Holdings held 25.9% stake. ICICI Bank will sell its stake in the IPO but Prudential Corp Holdings will not dilute its stake.
Till Financial Year 2015-16 total size of Life Insurance sector in India, based on total premium was Rs. 3.7 lakh crore. This makes India 10th Largest Insurance market in the world and Fifth largest in Asia. There is approximately 17% growth since FY01 till FY16. But still there is large scope to grow the Indian insurance market.