New: Dilemma for ICICI Pru Retail Investors on Application Size https://ipoandmore.com/2016/09/20/lots-icici-pru-life-ipo/
Important:ICICI Prudential Life Insurance IPO is to witness electric action in next few hours from HNIs & QIB . Will be subscribed many times. Retail if not applied may join as at some brokers the bidding goes till late night. going for heavy subscription
10% quota of ICICI Prudential Life Insurance IPO has been reserved for ICICI Bank shareholders which for for 1,81,34,105 number of equity shares and existing shareholders of ICICI bank (Indiviuals i.e. both Retail & HNI category only) can take advantage of this in two ways, depending on their risk appetite for this IPO.
NEW : Many banks are permitting online IPO application for ICICI bank shareholders in the ICICI Pru issue through ASBA as well in their IPO application section . checked it on Kotak bank and Axis Bank. hope others too are giving
Retail investors and high net worth individuals who are shareholders of ICICI can
- Either apply twice in the upcoming initial public offering of ICICI Prudential Life Insurance with overall application amount limit of Rs 2 Lacs
- Can Put in one application for a larger amount (More than Rs. 2 Lacs , if they so desire). These applicants will not be then able to apply twice.
Offline forms for ICICI shareholder category can be downloaded from bseindia website and then going to IPO section https://ibbs.bseindia.com/asbaforms/BlankForm.aspx?ipo=1178 and select category type as- SHA
This process is with the link is illustrated below :
ICICI Bank had 9.5 lakh individual shareholders as on June 31, 2016 and total shares reserved are 1,81,34,105. However the shareholders numbers may have gone up after this reservation was announced for icici pru. This means only meager allotment is expected under this quota also.
At the end of 2nd day activity in Grey market has ebbed with few buyers for application / Kostak which has already moved down to Rs. 700/-. ICICI Shareholders may cheeck that while the bidding at brokers may keep on going till late night, ICICI Bank shareholders applying for IPO under the shareholders quota may not be able to apply after 4 pm.
CAUTION & Important Comments: As stock markets turned cautious on Day 2 of the IPO ahead of the big event tomorrow, the grey market buyers at GMP / Kostak seems to have vanished. The issue is said to have gathered about 5 lakh applications from retail today at the end of Day 2 & subscription levels are about . 65 x for retail, .48 x for shareholders & .52X overall which appear to be on the lower side. There is little doubt that the IPO has been priced Rs. 10-20 more by management to extract mileage from market conditions and also influenced by high valuation of HDFC Life- Max deal and this poses a risk to those looking purely for listing gains. A good amount of interest should come from QIBs tomorrow towards the end & hopefully HNI’s too. While bidding for IPO at brokers could well extend upto midnight seeing the Issue size, ICICI shareholders bidding could close by 4 p.m. The Lead managers should have learnt a lesson from Yes bank fiasco. In place of keeping a lower rate, they reacted instead by keeping a wide price band (300-334). Possibility of issue not sailing through looks less but any such fear could rattle the investors and market as well. My own opinion is that barring any major loss of faith or external development tomorrow, the IPO should sail through but the subscriptions levels if not high enough will impact its listing price.
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Standard disclaimer: I am not a SEBI registered analyst. I may have vested interest in every stock I discuss. Please do your own due diligence as stock market investments have high degree of inherent risk.