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ICICI Prudential Life Insurance: ICICI Prudential Life Insurance Company Limited has received a goods and services tax (GST) demand and penalty order amounting
to Rs 18.82 crore for the financial year 2021–22, the company said in a regulatory filing.
Tax authorities alleging certain GST-related discrepancies
According to the disclosure, the order has been issued by the tax authorities alleging certain GST-related discrepancies for the said financial year. The total amount includes tax demand along with applicable interest and penalties.The insurer clarified that it does not agree with the order and plans to challenge it. “The company will file an appeal against the said order before the appropriate authority within the stipulated timelines,” ICICI Prudential Life Insurance said in its statement.
The company added that it will pursue legal remedies available under the law and does not expect the order to have a material impact on its financial position, subject to the outcome of the appeal.
Regulatory scrutiny amid broader ICICI Prudential developments
The GST demand comes at a time when ICICI Prudential group entities remain in focus among investors. Separately, ICICI Prudential Asset Management Company (AMC) is set to debut on the Indian stock exchanges following a strong response to its initial public offering.After the successful allotment finalised on Wednesday, ICICI Prudential AMC’s shares are scheduled to list on Friday, December 19, on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).
During the three-day subscription window, the IPO attracted bids worth nearly Rs three lakh crore, making it the fourth most-subscribed IPO in India’s capital market history. The issue aimed to raise Rs 10602 crore through an entirely offer-for-sale route, with Prudential Corporation Holdings divesting up to 48.97 million equity shares.
Price band for the IPO
The price band for the IPO was fixed between Rs 2061 and Rs 2165 per share, with a lot size of six shares. Overall, the issue was subscribed 39.17 times, led by strong participation from qualified institutional buyers.It is important to note that ICICI Prudential Life Insurance and ICICI Prudential AMC are separate entities, and the GST demand pertains only to the life insurance business.
Market participants will now closely track regulatory developments and the outcome of the appeal, alongside investor response to the upcoming stock market listing of ICICI Prudential AMC.
