Mumbai, July 18: ICICI Prudential Life Insurance Company, the country's largest private life insurer, today filed a draft red herring prospectus for an initial public offering that will see ICICI Bank divesting a part of its stake.
This will be the first IPO of a life insurer in the country.
ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank and Prudential Corporation Holdings Ltd, part of the Prudential group.
At present, ICICI Bank holds 67.62 per cent in the company, while Prudential Corporation owns 25.87 per cent. Other shareholders include Premji Invest (4 per cent) and Compassvale Investments Pte Ltd (2 per cent), a wholly owned subsidiary of Singapore-based Temasek.
In a filing with the stock exchanges, ICICI Bank today said the proposed offering of 181,341,058 shares of ICICI Prudential Life Insurance Company represents around 12.65 per cent of its equity share capital.
The IPO is an offer for sale by ICICI Bank. Prudential will not divest its stake.
ICICI Bank said 10 per cent of the offer (up to 18,134,105 equity shares) will be reserved for shareholders of the bank.
The bank is expected to raise around Rs 5,000 crore from the IPO, valuing the insurance firm at around Rs 39,000 crore.
During the year ended March, ICICI Prudential Life Insurance recorded a gross premium income of Rs 19,164 crore. This included Rs 4,924 crore of retail new business regular premium, Rs 432 crore of retail new business single premium, Rs 11,995 crore of retail renewal premium and Rs 1,813 crore of group premium.
In its draft prospectus, the company said it was exploring growth opportunities in emerging segments such as health and pension.
Bank of America Merrill Lynch and ICICI Securities are the global book running lead merchant bankers to the issue. Others are CLSA, Deutsche, Edelweiss, HSBC, IIFL, JM Financial and SBI Capital Markets.