ICICI Prudential Life Insurance: Largest IPO in 6 years

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ICICI Prudential Life Insurance is expected to file for IPO next week. The Issue of approx. 4700 crore could be biggest in last 6 years after largest ever public offer from Coal India Ltd to raise up to Rs 15,000 crore shares in October 2010. The entire issue will be a  sale by the promoter, ICICI Bank.

ICICI Prudential Life Insurance is a joint venture between ICICI Bank and Prudential Corporation Holdings. The company began operations in 2000.  While 74% was held by ICICI Bank , remaining 26% was held by  Prudential Plc.  A that point of time the limit for foreign companies to invest in insurance sector was capped at 26%. This was subsequently increased by Parliament. Thereafter ICICI Bank had reduced its stake to 68% by selling a part of the stake to  Premji Invest, a fund set up by Azim Premji, Temasek Holdings Pte (a Singapore state investment company).

ICICI Bank plans to sell part of its stake in the IPO, while Prudential Plc, which has a 26% holding, may not yet have made a decision on the sale. The insurance venture is the most highly valued one among private entities in the segment.



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