ICICI Holdings To Offload 5% Stake

ICICI''s insurance and asset management businesses need money and so five per cent of the holding company for these businesses will get sold to some financial investors.GIC, Temasek are in the race for the five per cent stake. The second round of due diligence is on and the deal is likely to be announced shortly after regulatory approvals from RBI and IRDA come in. ICICI Holdings is valued at $500 million, valuing the entire company at $10 billion. These three bidders have been short listed from a pack of 18-20 potential investors. Company sources admit that investors like Temasek and GIC, who are already invested in ICICI Bank may even get preferential allotments. But it is clear that the divestment is a prelude to bigger fund raising plans and may be an IPO in the next 12-18 months. Valuations are interesting. This current exercise will be for temporary funds and they will raise more capital. The business is growing at a huge pace,said Anand Tandon, Director, Gryffon Investment Advisors