The offer for sale from ICICI Prudential Life Insurance Company Limited (ICICI Pru) was oversubscribed. The company had through an offer for sale launched its IPO for 18.13 cr shares in a price band of Rs 300 to 334. The company had earlier allotted 4.89 cr shares to 38 anchor investors comprising of 69 entities at the top end of the price band at Rs 334.

The issue which included a reservation of 10% for shareholders of ICICI Bank was overall subscribed 10.48 times. At this level the total amount of funds garnered was Rs 58,240 crs, which is 1.2 times the market cap of the company going public at the top end of the issue price. The market cap of ICICI PRu would be Rs 47,940 crs at Rs 334.

This company has created a new record in the number of applications received. A total of 11.7 lakh applications were received beating the record of 11.19 lakh applications received by MAhanagar Gas Limited. The registered investor base has reached out to this issue and it has garnered the maximum possible across categories, particularly retail. The number of 1.42 times subscribed in retail should be viewed from the fact that the issue has garnered 11.7 lakh applications and the sheer size of issue at Rs 5,400 crs (minus shareholders reservation) or Rs 1,890 crs is huge by all standards.

The full details of the subscription bucket wise is given below: –

From the table above it can be seen that the large oversubscription in shareholders category is partly from leveraged applications made by HNI’s here as well. There effective funding cost per share is lower here than what it would be in the HNI category. The cost of funding at around 4.5% is Rs 8.25. The grey market premium is in the region of Rs 10-11. Important news for retail investors is that all those who have applied for one or two lots would get firm allotment considering the data that is available.

Retail investors are back and have applied in their highest number ever.