ICICI Prudential behaves resilient and tides over tough times

One of the largest listed life insurance company, ICICI Prudential, ever since its listing has not been able to breach its IPO price band of Rs 334, courtesy various factors.

ICICI Prudential, which was by far the biggest IPO of 2016, has failed to live up to investors' expectations as it had a poor listing, which was at a discount to the offer price and subsequently led to erosion of investor wealth in the company’s stock.

ICICI Prudential got listed on the bourses on September 29, the same very day when the Indian Armed Forces carried out a surgical strike across the border, leading to a big fall in the Indian markets, which made investors wary, consequently triggering a selloff on the listing day itself.

One the very first day, ICICI Bank plunged by more than 10 per cent by the end of the trading session, making small retail investors poorer. Ever since then the stock has not been able to breach its issue price.

However the stock has remained resilient in the face of the uncertainty surrounding the markets during the past two months, whereby the stock has generated a return of 6 per cent, post its closing on September 29, as against Sensex giving negative returns of close to 5 per cent.