Monday, September 19, 2016

IPO ANALYSIS: ICICI PRUDENTIAL LIFE INSURANCE COMPANY – INVESMENT SAFETY ASSURED - APPLY


                                                 ISSUE DETAILS

ISSUE OPENS / CLOSES ON
19-09 / 21-09-2016
ISSUE SIZE
18.13 CE EQUITY SHARES
FACE VALUE
RS 10
PRICE BAND
RS 330-334

BUSINESS

LIFE INS, INVESTMENTS
PROMOTERS
ICICI BANK, PRUDENTIAL CORP HOLDINGS
LISTINGS
BSE, NSE
BRLMs
DSP MERILLYNCH, ICICI SEC,CLSA, DEUTSECH SECURITIES, EDELWEISS,HSBC SEC, IIFL HOLDINGS,JM FINANCIAL, SBI CAPITAL MARKETS AND UBS SECURITIES

REGISTRAR
KARVY
IPO GRADE
NA


BUSINESS:

.
The company is the largest private sector life insurer in India by total premium in fiscal 2016 and assets under management at March 31, 2016. This is a joint venture between ICICI Bank Limited, India’s largest private sector bank in terms of total assets with an asset base of 7.2 trillion at March 31, 2016, and Prudential Corporation Holdings Limited, a part of the Prudential Group, UK.


In fiscal 2016, the market share, on a retail weighted received premium basis, among all insurance companies in India (public and private sector) was 11.3%, as compared with a market share of 9.7% for the nearest private sector competitor. Among the 23 private sector life insurance companies in India, ICICI Prudential Life has a market share of 21.9% in fiscal 2016.
  

OBJECTS OF THE OFFER:


The objects of the Offer are to achieve the benefits of listing the Equity Shares of the Company on the Stock Exchanges and to carry out the sale of up to 181,341,058 Equity Shares by the Promoter Selling Shareholder.



RISKS

1. Regulatory and statutory conditions.
2. General slowdown in the economy.
3. Frequent occurrence of natural disasters.
4. The industry is highly regulated.

  

VALUATION AND RECOMMENDATIONS:

The Company has an established track record of delivering annual returns to shareholders. The profit after tax was 16.53 billion in fiscal 2016 and 4.05 billion for the three months ended June 30, 2016,with an average EPS OF Rs 11.40 for the last 3 years. The return on equity has exceeded 30% for each year since fiscal 2012. ICICI Prudential Life has a strong capital position with a solvency ratio of 320.5% at June 30, 2016 compared to the IRDA-prescribed control level of 150%.

Invest for listing gains and as well for long term appreciation.






3 comments:

  1. where is listing gain and long term ....now availabe for 5% discount ...your analysis is wrong this time

    ReplyDelete
  2. Sir, ICICI Pru. is available in 10% discount now of issue price.

    ReplyDelete