ICICI Pru Life insurance IPO: To subscribe or not?
India's largest insurer is set to open its IPO today for subscription for nearly 18.13 crore equity shares. Reports state that the insurer has over Rs.1.09 trillion worth of assets under management. Brokerage firm Nomura valued the company at Rs.48,000 crore, while another brokerage Quant Capital gave the IPO a 'subscribe' rating, due to its healthy growth and increasing size in the insurance sector.
ICICI Prudential Life Insurance
ICICI Prudential Life Insurance is one of India's biggest insurance company, with assets over Rs.100,000 crore. The company was founded in late 2000, and is currently headquartered in Mumbai. The insurer was formed as a joint venture between India's ICICI Bank and British financial company Prudential PLC. It is currently headed by Sandeep Bakhshi who serves as the CEO of the company.
ICICI Prudential's IPO
India's insurance giant ICICI Prudential Life Insurance is set to open its IPO today, in a move that places it as India's first insurer to launch an IPO. The IPO looks to raise a whopping Rs.6,057 crore and is touted to be the biggest over the last six years. The bidding is open from 19 September and will close on 21 September.
How much do the shares cost?
ICICI Prudential's IPO will have the shares priced at a band of Rs.300-334 per share. The insurer has allotted over 4.89 crore shares at the top end of the band, which is Rs.334.
Angel Broking gives neutral rating, says issue fully priced
"ICICI Pru Life has been able to improve its net new business margins from 5.7% of the premium in FY15 to 8 per cent in FY16. The margins are still low compared to others but what gives confidence is the increasing trend" - Angel Broking.
Brokerages allots subscribe rating for IPO
The insurer's IPO was off to a good start with brokerage firms allotting 'subscribe' rating for its IPO. Anand Rathi said it was a robust investment opportunity as it looks to adopt retail participation. Ajcon Global assigned the IPO 'subscribe' ratings due to its solid business model and a strong dividend payment track record. Hem Securities also assigned 'subscribe', listing strong fundamentals.
