ICICI Prudential Life Insurance Company Ltd IPO (ICICI Prudential Life IPO) Detail
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Incorporated in 2001 as a joint venture between ICICI Bank Limited and Prudential Corporation Holdings Limited, ICICI Prudential Life Insurance Company Ltd is a Mumbai based largest private sector life insurer in India. Information in this paragraph is provided by chittorgarh.com, India’s No. 1 IPO Investment Portal.
ICICI Prudential Life offer a range of life insurance, health insurance and pension products and services to its customers. ICICI Prudential offers the products and services through an extensive multi-channel sales network across India, including through the branches of bank partners, individual agents, corporate agents, employees, offices and its website.
Company has a market share of 11.3% on a retail weighted received premium basis in India. Among the 23 private sector life insurance companies in India, Company has a market share of 21.9% on a retail weighted received premium basis. Visit chittorgarh.com for more detail.
IPO Highlights (As of March 31, 2016):
1. ICICI Bank owns 68 percent of the company and selling 12.65% stake though this IPO.
2. At the upper end of the price band, IPO will raise over Rs 6000 Cr.
3. Britain’s Prudential PLC, which owns nearly 26% of the company, is not selling any of its stake in the IPO.
4. Company has 121,016 individual agents and over 4,500 branches with Bank partners.
5. Gross premium income was Rs 191.64 billion
6. Company have 1.04 trillion of assets under management, making them one of the largest fund managers in India.
1. Consistent Leadership across Cycles
2. Delivering Superior Customer Value
3. Diversified Multi-channel Distribution Network
4. Leveraging Technology
5. Robust and Sustainable Business Model
6. Strong Brand
7. Experienced Senior Management Team
Summary of financial Information
Objects of the Issue:
The objects of the Offer are (Information partner: chittorgarh.com, India’s No 1 IPO Investment Portal)
1. To achieve the benefits of listing the Equity Shares of the Company on the Stock Exchanges and
2. To carry out the sale of up to 181,341,058 Equity Shares by the Selling Shareholder.
Issue Open. Sep 19, 2016 – Sep 21, 2016
Issue Type. Book Built Issue IPO
Issue Size: 181,341,058 Equity Shares of Rs 10 aggregating up to Rs 6,056.79 Cr
Offer for Sale of 181,341,058 Equity Shares of Rs 10 aggregating up to Rs [.] Cr
Face Value. Rs 10 Per Equity Share
Issue Price. Rs 300 – Rs 334 Per Equity Share
Market Lot. 44 Shares
Minimum Order Quantity. 44 Shares
Listing At. BSE, NSE
– An indicative timetable in respect of the Offer: (Refer Page No 556 of RHP)
- Bid/Offer Opens On: September 19, 2016
- Bid/Offer Closes On: September 21, 2016
- Finalisation of Basis of Allotment: On or about September 26, 2016
- Initiation of refunds: On or about September 27, 2016
- Credit of Equity Shares to demat accounts: September 28, 2016
- Commencement of trading of the Equity Shares: September 29, 2016
ICICI Prudential Life IPO Reviews:
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Issue Subscription Detail / Current Bidding Status
Number of Times Subscribed (BSE + NSE)
Multi-year improvement in
profitability; initiate at
Overweight. MORGAN STANLEY INDIA COMPANY
A balanced distribution mix, rising protection mix, and
improving persistency/costs will lead to multi-year
improvement in profitability, even as higher focus on ULIP
could keep growth volatile. This should drive a strong 40%
VNB CAGR during F16-19, which justifies premium valuations.
Market leader with sharp improvement in key operational metrics: We have a
positive view on Indian life insurers with strong distribution and good operational
metrics. ICICI Prudential Life Insurance (IPru) is one such strong franchise, helped
by its well-balanced distribution mix (including a captive bank tie-up with ICICI
Bank) and a sharp improvement in cost and persistency ratios in recent years.
We estimate a strong 17% premium CAGR in F16-19. IPru has a high focus on
selling unit-link insurance products (ULIP, 80% of its premiums, 35% industry
share) in relatively high income segments. This would drive growth amid
improving equity and debt market conditions. ULIPs, over the medium term,
compete well with mutual funds because of expense loadings declining to levels
even below what regulations allow.
. and a strong 6ppt improvement in margins to 14% by F19. Despite industryleading
persistency and cost ratios, IPru”s margins have been lower than peers”.
We expect the gap to narrow in F17-19 because of a rising share of protection mix,
improving persistency ratios, and higher economies of scale.
. justifying premium valuations: Our price target of Rs365 implies 2.9x December
2018 EV and 18% upside potential, driving our Overweight rating. While
valuations are significantly higher than regional peers”, we believe this is justified
by IPru”s superior operational metrics and distribution tie-ups (allowing it to gain
market share and improve profitability in still nascent Indian insurance market),
fast growing protection premiums, low balance sheet risk and high capital. Key
catalysts include strong growth in protection premiums and continued strong
equity market performance.
Key downside risks include: 1) weak equity markets; 2) more competition in the
protection business; 3) weaker persistency ratios; 4) a potential tie-up by ICICI
Bank with other insurers; and 5) an increase in corporate income tax rates.
MS On ICICI Pru:
Initiate Coverage With Overweight; Target At Rs365/Sh; Stock Will See A Multi-year Improvement In Profit
THOUGH I HAVE SOLD ALL MY SHARES ON FEAR SOME PEOPLE HAVE INFORMED IN MONEYCONTROL FOR THE PAST 3 DAYS THE THE DELIVERY VOLUME IS ENCOURAGING .I DO NOT KNOW THE FUTURE PROSPECT.MOREOVER I AM SHORT TERM INVESTOR.ONLY.HENCE I HAVE SOLD ALL MY SHARES. EXPERTS IN THIS FORUM ONLY CAN TELL THE RIGHT PATH.
egaleye gi plz your view now on
icici pru life share
OH I HAVE TODAY SOLD ALL 176 SHARES AT RS.311.5 INCURRED A LOSS OF RS.4000/-.ONE OF THEM COMMENTED AS A SLOW POSIION IN MONEY CONTROLCOM.TO AVOID FURTHER EROSION OF CPITAL I HAVE SOLD ALL MY SHARES.WHATEVER I GET PROFIT IN ENDURANCE TECHNOLOGY I HAVE LOST IN THIS COUNTER.THANK U ICICI PEROPLE WHO COMPELLED ME TO APPLY THIS IPO
I do not know the future but one of the worst stock in the recent ipos listing. which has not even achieved the offer price but that too even nearly one month.i do not know whether I have to sell at Rs.300/-