ICICI Prudential Life Insurance Company Limited OFFER FOR SALE 14 - JUNE

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1 ICICI Prudential Life Insurance Company Limited OFFER FOR SALE 14 - JUNE OFFER BACKGROUND The ICICI Bank Ltd (Promoter / Promoter Group) has submitted to BSE a copy of proposed offer for sale of an aggregate of 1,43,55,550 equity shares (representing 1.00% of the equity share capital of ICICI Prudential Life Insurance Company Ltd ("the Company") with an option to sell up to additional 1,43,55,550 (representing 1.00% of the equity share capital of the Company), of face value of Rs. 10 each of the Company (the "Equity Shares"), on the separate window provided by the stock exchanges for this purpose (such sale referred to hereinafter as the "Sale"), through a separate, designated window of the BSE Limited (the "BSE") and the National Stock Exchange of India Limited (the "NSE " and together with BSE, the "Stock Exchanges"). Date and Time of the Opening and Closing of the Offer : - For non-retail Investors: June 14, 2018 ( T ) The Offer shall take place on a separate window of the Stock Exchanges on T day i.e. June 14, 2018, commencing at 9:15 a.m. and shall close at 3:30 p.m. (Indian Standard Time) on the same date. Non-Retail Investors may indicate their willingness to carry forward their bids to T+1 day (defined below). Please note that only non-retail Investors shall be allowed to place their bids on T day, i.e. June 14, For Retail Investors (defined below) and for non-retail Investors who choose to carry forward their bids: June 15, 2018 ("T+1") The Offer shall continue to take place on a separate window of the Stock Exchanges on T+1 day commencing at 9:15 a.m. and shall close at 3:30 p.m. Stock Data Latest Data as on June 13, 2018 Latest Equity(Subscribed) Latest Reserve Latest EPS -Unit Curr Latest Bookvalue -Unit Curr Face Value Stock Exchange BSE Latest Market Price--Unit Curr Latest P/E Ratio Latest P/BV Week High -Unit Curr Week High-Date 04/07/ Week Low -Unit Curr Week Low-Date 5/12/2017 Market Capitalisation Dividend Yield -% 1.63 PE Chart THE SYNOPSIS OF THE OFFER FOR SALE IS AS FOLLOWS: Name of the Seller (Promoter/Promoter Group) The ICICI Bank Ltd (Promoter / Promoter Group) has submitted to BSE a copy of proposed offer for sale Name of the company whose shares are ICICI Prudential life Insurance co. Limited proposed to be sold and ISIN Name of the stock exchanges where orders shall be placed Name of the designated stock exchange Date and time of opening and closing of the sale Total number of equity shares being offered in the Sale Name of the broker(s) Retail Reservation Retail Discount NSE and BSE BSE Date: Jun 14, 2018 for Non-Retail; Open: 9.15 am; Close: 3.30 pm Date : Jun 15, 2018 for retail; Open : 9:15am;Close : 3.30pm 1,43,55,550 equity shares (representing 1.00% of the equity share capital of ICICI Prudential Life Insurance Company Ltd ("the Company") with an option to sell up to additional 1,43,55,550 (representing 1.00% of the equity share capital of the Company), of face value of Rs. 10 each of the Company (the "Equity Shares"). ICICI Securities Limited SBI Cap Securities Limited Citigroup Global Markets India Private Ltd 10% of the offer size No discount Floor Price Rs. 390 Allocation Methodology The allocation shall be at or above the Floor Price on price priority method at multiple clearing prices ("Clearing Prices") basis in accordance with the SEBI OFS Circulars. AVERAGES Turnover (NSE) Total Turnover Avg Turnover Days Weekly Fortnightly Monthly Quarterly Half Yearly Yearly AVERAGES VOLUME (NSE) Total Volume Avg Volume Weekly Fornightly Monthly Quarterly Half Yearly Yearly

2 Key Findings ICICI Prudential Life Insurance Company Limited is a life insurance company, which is a joint venture between ICICI Bank Limited and Prudential Corporation Holdings Limited. The Company provides life insurance, pensions and health insurance to individuals and groups. It conducts business in participating, non-participating and unit linked lines of businesses. Its segments include Par Life, Par Pension, Non Par, Annuity Non Par, Health, Linked Life, Linked Pension, Linked Health and Linked Group. It offers term plans, such as ICICI Pru iprotect Smart; unit linked insurance plans (ULIPs), such as ICICI Pru Wealth Builder II and ICICI Pru Elite Life II; child education insurance plans, such as ICICI Prudential SmartKid with Smart Life; retirement plans, such as ICICI Pru Easy Retirement; traditional savings/money back plans, such as ICICI Pru Cash Advantage and ICICI Pru Savings Suraksha, and Health insurance. It offers products on retail, mortgage and group platforms. The company is strongly focusing on business quality, indicated by 13th month persistency for retail regular premium business at 86.9% for 11mFY2018 which is the best in industry. The company aim to tap the growth potential for both savings and protection segments, while business objective continues to be growing the absolute VNB. The Value of New Business surged 93% to Rs 1286 crore in FY2018 over FY2017. Over a 3 year period VNB has grown at a CAGR of 68% driven by consistent growth in savings business, significantly higher growth in protection business, consistent improvement in persistency and cost ratios. The company aims to continue to grow the absolute value of new business (VNB). The company has lost private market leadership which it had held since inception in FY2018. APE grew by 17% with protection APE rising 72%. Savings APE and protection APE had grown at a CAGR of 16.3% and 80.4% respectively over the last 3 years. Retail Market share for the company was 11.8% in FY2018 as compared to 12.0% in FY2017. The growth of the company has been consistently ahead of the industry over the last 3 year and 5 year period. The company is a retail focused company with retail segment contributing more than 97% of new business APE and around 88.5% of the company's AUM. 13th month persistency, the most important indicator of quality of business, stood at 86.9% in 11MFY2018 for the retail regular premium business. About 60% of renewal premium is collected through the digital medium. About 93% of new business applications are initiated on digital platform. Technology has helped in improving employee productivity from Rs 0.21 crore in FY2012 to Rs 0.53 crore in FY2018. It has posted 17% decline in the net profit to Rs crore in the quarter ended March 2018 (Q4FY2018) compared with Rs crore in Q4FY2017. The Company registered a robust and well-rounded performance on all parameters. The company has maintained healthy premium income growth, while expenses were under control. The Assets under Management (AUM) increased to Rs crore for FY2018 as compared to Rs crore in FY2017, a growth of 13.5%. The assets under management of the company at Rs crore makes it one of the largest fund managers in India. A debt-equity mix stood at 53%:47%, while over 90% of the debt investments are in AAA rated and government bonds. The net worth of the company stood at Rs 6884 crore end March The solvency ratio was 252% against regulatory requirement of 150%. Conclusion The company registered a robust and well-rounded performance on all parameters, while aims to capitalize on the opportunities in the long term savings and protection segment using customer centric products delivered through multi-channel distribution architecture. The company has a balanced channel mix and all channels have been growing consistently. We expect the stock to see a price target of Rs.507 in 8 to 10 month time frame on a expected P/Bvx 9 of and FY19 (BVPS) of On the FY18 book value of Rs and expected P/Bvx 9, it may give 7% return from current market price of Rs during very short term. View : Positive 2

3 SHAREHOLDING PATTERN (%) Description as on 31/03/ /12/ /09/ /06/ /03/2017 Total Foreign Total Institutions Total Non Promoter Corporate Holding Total Promoters Total Public & Others Shareholding of securities of persons belonging to the category Public and holding more than 1% of the total number of shares Description as on 31/03/ /12/ /09/ /06/ /03/2017 APEX TRUST AZIM HASHAM PREMJI 4 4 COMPASSVALE INVESTMENTS PTE. LTD BSE DATA Date High -Unit Curr Low -Unit Curr Weekly Monthly Month Month Year DELIVERABLE VOLUME (BSE) Date Total Volume Deliverable Volume Deliverable Volume(%) 13/06/ /6/ /6/ /6/ /6/ /6/ /6/ /6/ /6/ DELIVERABLE VOLUME (NSE) Date Total Volume Deliverable Volume Deliverable Volume(%) 13/06/ /6/ /6/ /6/ /6/ /6/ /6/ /6/ /6/

4 Allocation methodology Oversubscription option Conditions for withdrawal of the Sale Conditions for cancellation of the Sale Conditions for participating in the Sale A minimum of 25% of the equity shares being offered in the Sale shall be reserved for allocation to mutual funds registered with SEBI under the SEBI (Mutual Funds) Regulations, 1996, as amended ("Mutual Funds") and insurance companies registered with the insurance Regulatory and Development Authority under the Insurance Regulatory and Development Authority Act, 1999, as amended ("Insurance Companies"), subject to receipt of valid bids/orders at the Clearing Prices. In the event of any under subscription by Mutual Funds and Insurance Companies, the unsubscribed portion shall be available to the other bidders. No single bidder other than Mutual Funds and Insurance Companies shall be allocated more than 25% of the size of the Sale. In case the Oversubscription Option is not exercised, the equity shares of the Company forming part of the Base Offer Size will hereinafter be referred to as "Offer Shares") through a separate, designated window of the BSE Limited (the "BSE ) and the National Stock Exchange of India Limited ( NSE, and together with the BSE, the Stock Exchanges ).The Offer shall be undertaken exclusively through the Seller's Brokers named below on a separate window provided by the Stock Exchanges for this purpose. The Seller reserves the right to not to proceed with the Sale at any time prior to the time of opening of the Sale on the Sale Date. In such a case, there shall be a cooling off period of 10 trading days from the date of withdrawal before an offer is made again. The Stock Exchanges shall suitably disseminate details of such withdrawal. In the event (i) the aggregate number of orders received in the Sale at or above the Floor Price is less than the total number of Sale Shares or (ii) of any default in settlement obligations, the Seller reserves the right to either conclude the Sale to the extent of valid bids / orders or cancel the Sale in full. The decision to either accept or reject the Sale shall be at the sole discretion of the Seller. Non-institutional buyers shall deposit 100% of the order value in cash up-front with the Clearing Corporation at the time of placing bids for the Sale. In case of institutional investors who place orders with 100% of the order value deposited upfront, custodian confirmation shall be within trading hours. In case of institutional investors who place orders without depositing 100% of the order value upfront, custodian confirmation shall be as per the existing rules for secondary market transactions. The funds collected shall neither be utilized against any other obligation of the trading member nor co-mingled with other segments. Modification or cancellation of orders would be allowed during the duration of the offer only for: (i)orders placed by institutional investors and by non-institutional investors, with 100% of the order value deposited upfront: Such orders can be modified or canceled at any time during the trading hours. (ii) Orders placed by institutional investors without depositing 100 % of the order value upfront: Such orders cannot be modified or cancelled by the investors or stock brokers, except for making upward revision in the price or quantity. The buyer shall also be liable to pay any other fees, as may be levied by the Stock Exchanges, including Securities Transaction Tax. In case of any permitted modification or cancellation of the order / bid, the funds shall be released/ collected on a real-time basis by the clearing corporation. In case of default in pay-in by any investor, 10% of the order value shall be charged as penalty from the investor and collected from the broker. This amount shall be credited to the Investor Protection Fund of the stock exchange. QUARTERLY PERFORMANCE Qtr Ending Mar.18 Qtr Ending Mar.16 VAR % Total Income OPM (%) OP Other income PBIDT Net Finance Charges PBDT Depreciation PBT before EO EO PBT after EO Tax expense PAT

5 BALANCE SHEET (Rs. In Crore) SOURCES OF FUNDS : Share Capital Reserves Total Equity Share Warrants Equity Application Money Total Shareholders Funds Minority Interest Secured Loans Unsecured Loans Total Loan Funds Policy Holders Fund Other Liabilities Total Liabilities APPLICATION OF FUNDS : Loan / Non-Current Assets Fixed Assets Gross Block Less: Accumulated Depreciation Less: Impairment of Assets Net Block Lease Adjustment Capital Work in Progress Investments Current Assets, Loans & Advances Inventories Sundry Debtors Cash and Bank Balance Loans and Advances Total Current Assets Less: Current Liab. & Provisions Current Liabilities Provisions Total Current Liabilites & Provisions Net Current Assets Miscellaneous Expenses not written off Deferred Tax Assets Deferred Tax Liability Net Deferred Tax Other Assets Total Assets Contingent Liability

6 PROFIT AND LOSS ACCOUNT (Rs. In Crore) (12) (12) (12) (12) (12) INCOME : Operating Income Other Income Total Income EXPENDITURE : Operating & Administration Expenses Miscellaneous Expenses Interest Less: Pre-operative Expenses Capitalised Employee Expense Total Expenditure Gross Profit Depreciation Minority Interest (before tax) Profit Before Tax Tax Fringe Benefit Tax Deferred Tax Net Profit CASH FLOW STATEMENT (Rs. In Crore) Cash Flow Summary Cash and Cash Equivalents at Beginning of the year Net Cash from Operating Activities Net Cash Used in Investing Activities Net Cash Used in Financing Activities Net Inc/(Dec) in Cash and Cash Equivalent Cash and Cash Equivalents at End of the year

7 RATIOS Key Ratios Debt-Equity Ratio Long Term Debt-Equity Ratio Current Ratio Turnover Ratios Fixed Assets Inventory Debtors Total Asset Turnover Ratio Interest Cover Ratio PBIDTM (%) PBITM (%) PBDTM (%) CPM (%) APATM (%) ROCE (%) RONW (%) Payout (%) Corporate Office: 11/6B, Shanti Chamber, Pusa Road, New Delhi Tel: Mumbai Office: Lotus Corporate Park, A Wing 401 / 402, 4th Floor, Graham Firth Steel Compound, Off Western Express Highway, Jay Coach Signal, Goreagon (East) Mumbai Tel: , Fax: Kolkata Office: 18, Rabindra Sarani, Poddar Court, Gate No-4, 5th Floor, Kolkata Tel.: / Fax: / SMC Global Securities Ltd. (hereinafter referred to as SMC ) is regulated by the Securities and Exchange Board of India ( SEBI ) and is licensed to carry on the business of broking, depository services and related activities. 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