With the government yet to approve foreign holding in ICICI Financial Services, ICICI Bank may look at options to rope in domestic investors in the holding company. An application for offering a slice of the holding company’s equity to overseas investors is stuck with the Foreign Investment Promotion Board (FIPB).
Sources said the bank had sensed interest among local institutional proprietary investors in the holding company. The bank had applied to the FIPB to get 24% foreign investment in ICICI Financial. It is also looking at listing this entity in the future. ICICI Bank had also received firm commitments of Rs 2,650 crore ($650 million) for a 5.9% stake in ICICI Financial. This put the holding company’s valuation at $10.94 billion. The investors, who have agreed to pick up stakes, include Goldman Sachs, Swiss Re and Nomura, along with two more overseas investors. Of this, Goldman Sachs has agreed to pick up a 2.02% stake. Over 70% of the value of ICICI Holdings is expected to come on account of ICICI Prudential — the largest private life insurance company in India. Although it’s yet to show profits, the high growth in the insurancebusiness and a 7% market share have helped in the valuation of the holding company. The holding company will own ICICI Bank’s stake in insurance and mutual fund JVs.
Read more in The Economic Times article.
Showing posts with label ICIC Financial Services. Show all posts
Showing posts with label ICIC Financial Services. Show all posts
Monday, July 23, 2007
Monday, June 25, 2007
Govt nixes ICICI plan to sell stake in arm
ICICI Bank, India’s second largest lender that raised a record $4.9 billion in follow-on share sale last week, said its plan to sell a 5.9% stake in a subsidiary has failed to get the government’s nod.
The bank had aimed to raise about $650 million from the stake sale in ICICI Financial Services Ltd, a fully owned subsidiary that has controlling holdings in insurance and asset management ventures.The unit holds 74% each of ICICI Prudential Life Insurance Co. and ICICI Lombard General Insurance Co. It also owns 51% each of ICICI Prudential Asset Management Co. and in ICICI Prudential Trust Ltd.
ICICI Bank said it had not yet received an official communication from the Foreign Investment Promotion Board, but added the deal would be terminated if the approval failed to materialise within a mutually agreed date.It did not disclose who the buyers were nor the date.
Local media said Goldman Sachs and other foreign funds were interested in buying the stake.They also cited this as the reason why the approval failed to come through because of a government rule that limits foreign holding in insurance ventures at 26%.
The bank had aimed to raise about $650 million from the stake sale in ICICI Financial Services Ltd, a fully owned subsidiary that has controlling holdings in insurance and asset management ventures.The unit holds 74% each of ICICI Prudential Life Insurance Co. and ICICI Lombard General Insurance Co. It also owns 51% each of ICICI Prudential Asset Management Co. and in ICICI Prudential Trust Ltd.
ICICI Bank said it had not yet received an official communication from the Foreign Investment Promotion Board, but added the deal would be terminated if the approval failed to materialise within a mutually agreed date.It did not disclose who the buyers were nor the date.
Local media said Goldman Sachs and other foreign funds were interested in buying the stake.They also cited this as the reason why the approval failed to come through because of a government rule that limits foreign holding in insurance ventures at 26%.
Wednesday, June 13, 2007
ICICI Financial gets Rs 2,650 cr offers for 6% pie
ICICI Bank today said it has received offers from various investors for 5.9% stake in its proposed new subsidiary worth Rs 2,650 crore.
The bank has received definitive offers from investors for subscription to equity shares its new subsidiary for insurance and asset management business, ICICI Financial Services, ICICI Bank said in a communique to the BSE.
The investors have agreed for entering into definitive agreements for this purpose. The offer values ICICI Financial Services at Rs 44,600 crore on a post-issue basis.ICICI, however, did not disclose the details of the investors from whom it had received the subscription offers.
The bank has received definitive offers from investors for subscription to equity shares its new subsidiary for insurance and asset management business, ICICI Financial Services, ICICI Bank said in a communique to the BSE.
The investors have agreed for entering into definitive agreements for this purpose. The offer values ICICI Financial Services at Rs 44,600 crore on a post-issue basis.ICICI, however, did not disclose the details of the investors from whom it had received the subscription offers.
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