 "ICICI Prudential Life inches toward IPO issue price")
ICICI Prudential Life Insurance Company was trading 2% higher at Rs 333, inching towards its initial public offer (IPO) issue price of Rs 334 per share.
In past seven trading sessions, the stock outperformed the market by surging 13% from Rs 295 on December 28, as compared to 2.4% rise in the S&P BSE Sensex.
The counter has seen huge trading volumes as compared to two-week average, with a combined 2.07 equity shares changed hands on the BSE and NSE till 01:15 pm.
The shares of insurance company hit high of Rs 333.90 in intra-day trade on first day of its listing on September 29, 2016, was finally settled at Rs 297.64 on BSE. Post listing, it touched a low of Rs 273.65 on November 9, 2016 during intra-day trade. ICICI Prudential Life Insurance had raised Rs 6,057-crore through IPO, become the first insurer to list.
ICICI Prudential Life Insurance while announcing results on October 25 said for H1FY17 (April to September 2016), the value of new business (VNB) margin of the company increased to 9.4% from 8% in FY2016 on account of increase in protection business.
The growth in the VNB has come from the growth of the overall business as well as the protection business which grew at 132.7% for the half year.
“ICICI Prudential Life Insurance has emerged from a tough 6-7 years of low growth and we see around 20% top-line compound annual growth rate (CAGR) from FY16-20 driven by improving penetration and robust markets,” JP Morgan said in Q2FY17 results update.
The foreign brokerage expects significant margin improvement over the next 4-5 years. The two primary drivers are improvement in persistency; and change in product mix. It believes the elevated valuations are supported by high growth, improving margins and capital-light model.
In past seven trading sessions, the stock outperformed the market by surging 13% from Rs 295 on December 28, as compared to 2.4% rise in the S&P BSE Sensex.
The counter has seen huge trading volumes as compared to two-week average, with a combined 2.07 equity shares changed hands on the BSE and NSE till 01:15 pm.
The shares of insurance company hit high of Rs 333.90 in intra-day trade on first day of its listing on September 29, 2016, was finally settled at Rs 297.64 on BSE. Post listing, it touched a low of Rs 273.65 on November 9, 2016 during intra-day trade. ICICI Prudential Life Insurance had raised Rs 6,057-crore through IPO, become the first insurer to list.
ICICI Prudential Life Insurance while announcing results on October 25 said for H1FY17 (April to September 2016), the value of new business (VNB) margin of the company increased to 9.4% from 8% in FY2016 on account of increase in protection business.
The growth in the VNB has come from the growth of the overall business as well as the protection business which grew at 132.7% for the half year.
“ICICI Prudential Life Insurance has emerged from a tough 6-7 years of low growth and we see around 20% top-line compound annual growth rate (CAGR) from FY16-20 driven by improving penetration and robust markets,” JP Morgan said in Q2FY17 results update.
The foreign brokerage expects significant margin improvement over the next 4-5 years. The two primary drivers are improvement in persistency; and change in product mix. It believes the elevated valuations are supported by high growth, improving margins and capital-light model.
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