Not keen on IPO now: ICICI Pru

Even as the sectoral regulator Irda has said IPO guidelines will be out within the next 45 days, leading private sector insurer ICICI Prudential Life today said it is not very keen on hitting the capital market soon.

"We are not very keen on going in for an IPO (initial public offer) as we don't need to raise any capital now. We are, in fact, very well capitalised," ICICI Prudential Life Managing Director and Chief Executive Sandeep Bakshi told PTI.

However, speaking at a roundtable on the last day of the 13th Global Conference on Actuaries here, he said, IPO will be good for the industry as it will help companies arrive at better price discoveries.

Yesterday, Insurance Regulatory and Development Authority Member (Actuaries) R Kannan said the regulator will issue the IPO guidelines within the next 30-45 days.

When asked specifically does that mean it would not be issued within this fiscal, he had shot back asking, "is there any company waiting at our doors with the IPO prospectus?"

ICICI Pru Actuarial Head Sunil Sharma said, "Our solvency level is over 300% against the regulatory requirement of 150%. So we don't need capital by way of divesting our stake in the market."

To a question whether the company is looking at takeover as Irda will be issuing M&A norms in the next 2-3 months, Bakshi said, "I don't think we are looking at any acquisitions now. You know the shape of the industry since last September, when there was a raft of regulatory changes and the resultant plight of the industry."

"I think we should first work towards stabilising the current business and then look at takeovers," he said.

At the seminar, HDFC Standard Life Chief Executive Amitabh Chaudhary said though the IPO will be good, time is not ripe for it. "What will we offer to the investor in terms of current profitability as well as the expected future profits?" he asked and dismissed the idea for now.

Kannan had said yesterday Irda would be able to issue M&A guidelines within the next three months.

"We have been examining the pros and cons of mergers and acquisition in the industry and we are sure to come out with the final guidelines within the next two to three months," he said.

The last takeover in the life space took place way back in 2005 when Reliance Life bought out AMP Sanmar.