- Either apply twice in the upcoming initial public offering of ICICI Prudential Life Insurance with overall application amount limit of Rs 2 Lacs
- Can Put in one application for a larger amount (More than Rs. 2 Lacs , if they so desire). These applicants will not be then able to apply twice.
ICICI Bank had 9.5 lakh individual shareholders as on June 31, 2016 and total shares reserved are 1,81,34,105. However the shareholders numbers may have gone up after this reservation was announced for icici pru. This means only meager allotment is expected under this quota also.
At the end of 2nd day activity in Grey market has ebbed with few buyers for application / Kostak which has already moved down to Rs. 700/-. ICICI Shareholders may cheeck that while the bidding at brokers may keep on going till late night, ICICI Bank shareholders applying for IPO under the shareholders quota may not be able to apply after 4 pm.
CAUTION & Important Comments: As stock markets turned cautious on Day 2 of the IPO ahead of the big event tomorrow, the grey market buyers at GMP / Kostak seems to have vanished. The issue is said to have gathered about 5 lakh applications from retail today at the end of Day 2 & subscription levels are about . 65 x for retail, .48 x for shareholders & .52X overall which appear to be on the lower side. There is little doubt that the IPO has been priced Rs. 10-20 more by management to extract mileage from market conditions and also influenced by high valuation of HDFC Life- Max deal and this poses a risk to those looking purely for listing gains. A good amount of interest should come from QIBs tomorrow towards the end & hopefully HNI’s too. While bidding for IPO at brokers could well extend upto midnight seeing the Issue size, ICICI shareholders bidding could close by 4 p.m. The Lead managers should have learnt a lesson from Yes bank fiasco. In place of keeping a lower rate, they reacted instead by keeping a wide price band (300-334). Possibility of issue not sailing through looks less but any such fear could rattle the investors and market as well. My own opinion is that barring any major loss of faith or external development tomorrow, the IPO should sail through but the subscriptions levels if not high enough will impact its listing price.