ICICI Prudential disappoints

As warned by our Editor, Mr.SP Tulsian, ICICI Prudential got listed much below the IPO price.

The company made a disappointing debut at Rs.319 on the BSE v/s IPO price of Rs.334 and continues to wallow in the red.

The IPO had met with a good response, subscribing over 10 times with non-institutional investors taking the lions share, subscribing 28.55 times, followed by QIBs at 11.83 times. Retail investors subscribed 1.42 times.

In our New Issue Analysis column, we had stated very explicitly, “Despite strong brand and pedigree, the IPO seems to be fully priced, leaving little-to-no money on the table for prospective investors. Moreover, flat bottomline growth, 48% premium to last concluded transaction less than 9 months ago coupled with risks to margins from high exposure to ULIPS and lower proportion of protection business remain. Citing expensive valuations, one can skip this maiden life insurance IPO in the history of Indian stock markets! “