Moneycontrol Bureau
ICICI Prudential Life Insurance Company is sulking on first day of trade at Dalal Street. Shares of the largest private sector life insurer fell 11 percent intraday on Thursday, after making stock market debut at Rs 330, down 1 percent from issue price of Rs 334 per share. Santosh Singh, Head of Research India, Haitong Securities says right valuation for the company is around 10-12 percent lower than the current prices, so one could buy it at around Rs 300 levels for investors with 6-12 month perspective. “However, investors with a 3-4 year perspective can buy at current levels of around Rs 332 would make good returns,” he says in an interview to CNBC-TV18. On an embedded value basis the stock is expected to grow at 15-16 percent, he adds. ICICI Prudential Life Insurance's IPO was subscribed 16 percent on the first day of the offer. The Rs 6057-crore public issue was available for subscription at Rs 300-334 per share for its 18.13 crore equity shares initial public offer (representing 12.63 percent of the post-offer paid-up equity share capital). The public issue was oversubscribed 10.48 times. The reserved portion of qualified institutional buyers was oversubscribed 11.83 times and non-institutional investors' category 28.55 times. The reserved category of retail investors was oversubscribed 1.42 times and shareholders' portion 12.2 times. As per NSE data,10.6 lakh shares trade in 5 blocks on NSE at Rs 328.50-332.45 per share. Reportedly, billionaire investor Rakesh Jhunjhunwala applied for shares worth Rs 750 crore for the issue but was allotted shares worth about Rs 27 crore. At 12:55 hrs ICICI Prudential Life Insurance Company was quoting at Rs 301.20, down Rs 32.80, or 9.82 percent.
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