| ICICI Financial Services, ICICI Bank’s subsidiary which owns its insurance and asset management businesses, will offload 5.9 per cent stake to five investors for around Rs 2,650 crore. |
| At the current price, ICICI Financial Services is valued at Rs 44,600 crore on a post-issue basis. |
| The placement is subject to regulatory clearance. The private equity investors likely to buy the stakes are General Atlantic, Government of Singapore Investment Corporation (GIC), Temasek and Crown Capital. |
| Sources indicated that all investors would be allotted equal stakes in ICICI Financial Services. JP Morgan is the financial advisor for selling the stake. |
| The two Singapore-based private equity players, GIC and Temasek, have stakes in ICICI Bank. |
| ICICI Bank declined to comment on the names of the investors. |
| “The arrangement is subject to receipt of regulatory and other approvals, including those of the Reserve Bank of India, the Insurance Regulatory and Development Authority and the Foreign Investment Promotion Board, and would terminate failing receipt of such approvals within a mutually agreed date,’’ said, ICICI Bank. |
| The private placement is just the beginning. ICICI Financial Services is planning to list its equity shares at an appropriate time to meet a part of its further capital requirements for ICICI Life and ICICI General. |
| However, ICICI Bank intends to retain the majority ownership in ICICI Financial Services. |
| ICICI Prudential Life has registered a growth of 103 per cent in new business premium at Rs 4,381 crore and has a 10 per cent market share. |
| But the company’s loss jumped to Rs 649 crore in the financial year ended March 31, 2007, from Rs 187 crore a year earlier. |
| ICICI Lombard registered a profit of Rs 68.36 crore in 2007 against Rs 50.31 crore a year earlier. |
| ICICI Prudential Asset Management has 11.6 per cent market share, with assets under management of around Rs 37,900 crore. It recorded a profit of Rs 48.38 crore in 2006-07 against Rs 31.13 crore in the previous year. |
Source : Business Standard