Prudential Holdings Corporation will be selling its 3.71% stake in ICCI Prudential Life Insurance Co. Ltd. for raising about ₹1600 crore and also to comply with the SEBI’s public holding norms. The deal involves selling of about 5.32 crore shares at the predetermined floor price is ₹300 apiece which is 7% lower than the closing price on Monday at ₹322.25.
“Prudential Corporation Holdings (seller) of ICICI Prudential Life Insurance Company Ltd (company) has submitted to BSE a copy of notice of offer for sell up to an aggregate of 37,330,397 equity shares (representing 2.6% of the equity share capital of the company)… with an option to additionally sell up to 15,937,208 equity shares (representing 1.11 of the equity share capital),” ICICI Prudential Life said in a statement.
The offer for sale will be open for non-retail investors on Tuesday (26/03/19) and for retail investors it will be open on 27/03/19.
Promoters of ICICI Prudential life Insurance has to reduce their stake in the company to comply with the market regulators minimum public holding norms. Currently promoters collectively own 78.69% stake out of which 25.82% is owned by Prudential Holding Corporation. This deal will bring down it to 22.11% while the stake of ICICI Bank will remain intact at 52.87%.