ICICI Prudential Life shares fall 9% after Bharti Life deal; here's why

Shares of ICICI Prudential Life Insurance Company Ltd fell nearly 9 per cent in Monday's trade after the life insurer said a 75 per cent stake acquisition in Bharti Life Insurance Company by promoter Prudential would require it to cut its shareholding in the listed company to under 10 per cent. Prudential would also be required to cease to be a promoter of the company, in accordance with applicable laws. Following the development, shares of ICICI Prudential Life fell 8.64 per cent to hit a low of Rs 489 on BSE, extending its year-to-date losses to 26.29 per cent.

"Regulatory approvals for the transaction are expected to require Prudential to reduce its shareholding in ICICIPru Life to under 10 per cent. Prudential is engaging with the relevant regulatory authorities on this process and will seek an appropriate timeframe for the
divestment that may be required, in the interests of its shareholders," ICICI Prudential Life said.

Besides, Prudential continued to progress toward regulatory approvals for its standalone, majority-owned health insurance business in India. Health insurance operations are expected to commence during 2026 on receipt of these approvals, ICICI Prudential noted. 

Prudential deal 
The transaction is for an initial cash consideration of Rs 3,500 crore payable on completion. The transaction will be funded from existing resources, Prudential said. 
On the deal, ICICI Prudential said Prudential has entered a share purchase agreement with 360 One Private Equity Fund - Series 2, 360 One Special Opportunities Fund - Series 11, 360 One Special Opportunities Fund - Series 12 and 360 One Special Opportunities Fund - Series 13 and Bharti Life, whereby it has agreed to acquire a 75 per cent stake in Bharti Life. 

The completion of the proposed transaction is subject to receipt of applicable regulatory approvals and the satisfaction of other conditions, ICICI Prudential said on Sunday.

Following completion, Prudential’s Indian operations will consist of majority-owned Bharti Life Insurance Company Limited and Prudential HCL Health Insurance Limited, and minority shareholdings in two listed entities, namely 35 per cent of ICICI Prudential Asset Management Company Limited and 22 per cent in ICICI Prudential Life Insurance Company Limited.

Prudential Plc’s CEO Anil Wadhwani called India a strategically important market for Prudential and said its joint partnership with the ICICI group of companies, has, for many decades, provided high-quality financial services solutions in India. "We deeply appreciate this partnership and value our relationship with them," it said.