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ICICI Prudential Life files papers for biggest IPO in six years

PUBLISHED ON JUL 19, 2016 07:49 AM IST

MUMBAI: ICICI Prudential Life Insurance, one of India’s largest private sector companies, has filed draft papers with the Securities and Exchange Board of India (Sebi) to raise an estimated 5,000 crore through an initial public offering (IPO), the first by an insurer in India and the biggest in nearly six years.

The company is a venture between ICICI Bank and UK’s Prudential Corp Holdings. ICICI Bank has 68% stake, while Prudential holds 26%. Azim Premji and Singapore’s Temasek hold the remaining 6%.

ICICI plans to sell up to 181.34 million equity shares, or about 12.65% of its stake, via the IPO. Prudential is not selling its stake in the IPO. It will include a reservation of up to 18.1 million shares, 10% of the offer, for individual and Hindu Undivided Family shareholders of ICICI Bank, the company said in a filing to the stock exchanges.

ICICI Bank’s shares rose 1.2% after reports of the IPO, but ended down 0.75% on the BSE.

After a good year for IPOs last year, activity in the primary market has further picked up this year. In the first three months of 2016-17, companies raised 5,855 crore through share sales, highest in the last nine years for the same period, according to Prime Database. Moreover, around 19 companies have received Sebi’s approval to raise over 7,700 crore.

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