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ICICI Prudential surges 9% after good response for OFS

The stock rallied 9 per cent to Rs 348 on the BSE in early morning trade as the offer for sale of the company saw subscription of 3.9 times.

SI Reporter  |  Mumbai 

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Shares of Life Insurance Company rallied 9 per cent to Rs 348 on the BSE in early morning trade as the promoter’s share sale programme received good response from non-retail investors.

The (OFS) of saw subscription of 3.9 times. Investors bid for 210 million shares against 53.26 million shares on offer.

Prudential Corporation Holdings had proposed to sell up to 37.33 million shares representing 2.6 per cent of the total equity shares capital of with option to sell up to additional 15.94 million shares (1.11 per cent to total equity) between March 26, 2019 and on March 27, 2019.

Non-retail investors are allowed to subscribe on Tuesday. Retail investors can bid on Wednesday.

The 53.2 million share sale will fetch Prudential around Rs 1,598 crore. The floor price for the sale has been fixed at Rs 300, a discount of 7 per cent to Monday’s closing price of Rs 322.35.

Promoters of ICICI Prudential Life need to reduce 3.69 per cent stake to comply with Sebi’s minimum public holding norms. Currently, ICICI Bank and Prudential Corporation together own 78.69 per cent stake in the company. Prudential Corporation’s shareholding in ICICI Prudential will come down to 22.11 per cent after the At present, Prudential Corp holds 25.82 per cent stake in the company while ICICI Bank owns 52.87 per cent.

Meanwhile, ICICI Prudential said, the company had sold 1.92 million shares or 2.02 per cent stake in Jyothy Laboratories on Monday, March 25, 2019, for an undisclosed amount. Based on Monday's closing price of Rs 185, ICICI Prudential fetched around Rs 137 crore.

At 09:50 am, ICICI Prudential was trading 7 per cent higher at Rs 343 on the BSE, as compared to a 0.38 per cent rise in the S&P BSE Sensex. The trading volumes on the counter jumped nearly four-times with a combined 8.41 million equity shares changing hands on the BSE and NSE.

First Published: Wed, March 27 2019. 09:54 IST