ICICI Pru IPO at Rs 300-334: All that you need to know

India’s biggest ever Insurance IPO of ICICI Prudential is to hit the primary market on September 19 and will close on September 21, according to a company filing on the exchanges. Price band of the proposed IPO has been fixed between Rs 300 to Rs 334 per equity share.

ICICI Prudential is a Joint Venture between private sector banking leader ICICI and UK based Prudential Corporation Holdings. ICICI Bank holds around 68 per cent stake in the insurance JV, while Prudential holds around 26 per cent. The remaining shares are owned by entities belonging to Wipro’s Azim Premji and the Singapore government’s Temasek Holdings.

The primary offer comprises of 18,13,41,058 equity shares of ICICI Prudential Life Insurance company, representing 12.65 per cent of the entire share capital through an offer for sale, therefore valuing the insurer at Rs 32,500 crore.

There are about 10 investment banks managing the IPO, with Bank of America, Merrill Lynch and ICICI Securities being the global co-ordinators and book-running lead managers, with the likes of Citi, CLSA, DB, HSBC, SBI Caps etc being other lead managers.

This IPO offers to be a wonderful opportunity for investors to be a part of the growth story of the Indian insurance sector. The insurance industry is keenly looking at the IPO route. Many state run and private insurance companies are looking at raising money from the new issue.