ICICI Pru Life's mega IPO subscribed fully; NII quota sees 3.6x bids

NEW DELHI: ICICI Prudential Life Insurance’s Rs 6,000 crore mega initial public offering ( IPO) got fully subscribed on Wednesday, with investors bidding for 1.69 times the issue size by 1.45 pm (IST).

The biggest IPO in nearly six years attracted bids for 22.4 crore shares on Day 3 of the bidding process.

Read more: ICICI Pru IPO sails through, subscribed 10.4 times the issue size

Retail individual investors have so far bid for 5.8 crore shares, or 1.02 per cent of the quota limit of 5.71 crore shares. The portion reserved for ICICI Bank shareholders was subscribed 78 per cent.

The quota for non-institutional investors was subscribed 3.63 times, while the QIB portion got subscribed 1.91 times. The QIB subscription data excluded the anchor investor portion. The issue will close today.

The insurer had on Friday allotted Rs 1,635 crore worth of shares to anchor investors. Till Tuesday, the IPO had attracted over 7.5 lakh applications from investors.

“The IPO price range of Rs 300-334 implies a valuation of 3.1-3.4 times on March FY16 EV, while 2.2-2.4 times on September FY18 EV, which is fully priced in. But RoEV are likely to improve to 18-19 per cent by FY18 on high business growth, improving margin on the back of improving persistency and better equity cycle. Hence, we recommend to subscribe for long term gains,” brokerage Prabhudas Lilladher said in a note.

Considering the recently-announced merger of Max Life with HDFC Life, the valuation looks reasonable, Nirmal Bang Securities said in another note. SMC Global has given a 3.5/5 rating to the issue.

ICICI Prudential had sold a 6 per cent stake in November 2015 to investors such as Azim Premji and Temasek Holdings for Rs 1,950 crore, valuing the company at Rs 32,500 crore. At the upper end of the price band, the company is valued at about Rs 48,000 crore.