ICICI Pru gets Sebi nod for India’s 1st insurance IPO

ICICI Prudential Life Insurance Company has received markets regulator SEBI’s approval to raise an estimated Rs. 5,000 crore through an initial public offering. It is the first by an insurer in India and the biggest in nearly six years. 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 that of Prudential is 26 per cent.

The public offer comprises up to 18,13,41,058 equity shares of ICICI Prudential Life Insurance Company, representing about 12.65 per cent of its equity share capital for cash, through an offer for sale by ICICI Bank, as per the draft papers. The offer includes a proposed reservation of up to 1,81,34,105 equity shares (10 per cent of the offer) for shareholders of ICICI Bank.

Prudential will not dilute its stake in the IPO of ICICI Prudential Life Insurance Company while ICICI Bank will be selling its 12.65 per cent stake in the insurer. The size of the IPO is estimated to be worth around Rs. 5,000 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.