ICICI Pru IPO: 73% subscription on Day 1; big leap by GMP | Would you bid?

Kolkata: Investor interest in the Rs 10,602.65-crore ICICI Pru IPO increased on the first day of the bidding process. While the issue managed to attract bids that amounted to 73% of the mega IPO, its GMP surged by a massive Rs 105 during the day. By the end of the first day of bidding, the issue was subscribed 0.73 times overall -- 0.21 times in the retail category, 1.97 times in QIB (Ex Anchor) category and 0.38 times in the NII category. The participation of the QIBs (Qualified Institutional Buyers) is significant since these are usually banks, insurance companies and AMCs which have both the deep pockets to invest a lot of money and the analytical skills and tools to analyse a public issue threadbare.

ICICI Pru IPO has already been lapped by big investors at the global and domestic level. On Dec 11, the IPO managers said that they have raised Rs 3,022 crore from anchor investors such as the government of Singapore, Abu Dhabi Investment Authority, Fidelity, Norges Bank, BlackRock, Aberdeen, Wellington, Capital World, JP Morgan Investment Management Inc., Goldman Sachs, Aranda Investments Pte, LIC, SBI MF, Nippon India MF, Axis MF, HDFC MF and Aditya Birla Sun Life MF. A total of 1.39 crore shares were allotted to as many as 149 funds at Rs 2,165 apiece.

In the domestic market the Jhunjhunwala family and veteran investors such as Madhusudan Kela and Manish Chokhani have picked up shares in the pre-IPO round, in which 26 domestic and foreign investors injected Rs 4,815 crore into ICICI Pru. Parent ICICI Bank itself picked up additional 2% stake in the AMC by investing Rs 2,140 crore.

According to investorgain, ICICI Pru GMP jumped from a level of Rs 150, where it stood in early morning of Dec 12 to Rs 255 during the day. It stood at Rs 255 in early morning of Dec 13. At this level, it signalled a listing gain of 11.78% and a listing price of Rs 2,420. The GMP was at Rs 85 on Dec 8. It rose to Rs 124 on Dec 9, Rs 119 on Dec 10 and Rs 150 on Dec 11. However, it must be remembered that GMP, or Grey Market Premium, is an unofficial indicator, extremely volatile and cannot guarantee any listing gain (or loss).

The price band of ICICI Pru IPO is Rs 2,061-2,165. Retail investors need to apply for a minimum of six shares, for which he/she has to pay an application amount of Rs 12,990 based on the upper price band. For sNII investors, the minimum lot size is 96 shares and for bNII investors the smallest lot is will 462 shares. Citigroup Global Markets India is the book running lead manager while Kfin Technologies is the registrar of the issue.

IPO bid closes: Dec 16

Cut-off time for UPI mandate confirmation: 5 pm on Dec 16

Allotment: Dec 17

Refund: Dec 18

Credit of shares to demat: Dec 18

Listing: Dec 19