ICICI Bank sells 6% stake in life insurance arm for INR19.5b

ICICI Pru’s valuation is now INR325b.

Hoping to help discover the value of ICICI Prudential Life prior to its listing in 12-18 months, the Mumbai-based banking company has sold 6% of its stake to Premji Investments and Temasek.

According to a report from Maybank Kim Eng, the life insurance business contributes 10% to their SOTP valuation of ICICI Bank, based TP of INR335.

Meanwhile, Maybank Kim Eng says the transaction will not result in capital infusion in ICICI Pru, due to its nature as a direct sale.

“Positive impact on ICICIBC's capital base will be marginal at 2-3%,” the report said.