public companies who own 73% along with institutions invested in ICICI Prudential Life Insurance Company Limited (NSE:ICICIPRULI) saw increase in their holdings value last week

Key Insights

• The considerable ownership by public companies in ICICI Prudential Life Insurance indicates that they collectively have a greater say in management and business strategy
• ICICI Bank Limited owns 51% of the company
• 14% of ICICI Prudential Life Insurance is held by Institutions

To get a sense of who is truly in control of ICICI Prudential Life Insurance Company Limited (NSE:ICICIPRULI), it is important to understand the ownership structure of the business. We can see that public companies own the lion's share in the company with 73% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

While public companies were the group that benefitted the most from last week’s ₹70b market cap gain, institutions too had a 14% share in those profits.

In the chart below, we zoom in on the different ownership groups of ICICI Prudential Life Insurance.

Check out our latest analysis for ICICI Prudential Life Insurance

What Does The Institutional Ownership Tell Us About ICICI Prudential Life Insurance?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

As you can see, institutional investors have a fair amount of stake in ICICI Prudential Life Insurance. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at ICICI Prudential Life Insurance's earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in ICICI Prudential Life Insurance. Our data shows that ICICI Bank Limited is the largest shareholder with 51% of shares outstanding. This implies that they have majority interest control of the future of the company. Prudential plc is the second largest shareholder owning 22% of common stock, and Temasek Holdings (Private) Limited holds about 3.8% of the company stock.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of ICICI Prudential Life Insurance

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

We note our data does not show any board members holding shares, personally. It is unusual not to have at least some personal holdings by board members, so our data might be flawed. A good next step would be to check how much the CEO is paid.

General Public Ownership

With a 11% ownership, the general public, mostly comprising of individual investors, have some degree of sway over ICICI Prudential Life Insurance. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Public Company Ownership

Public companies currently own 73% of ICICI Prudential Life Insurance stock. We can't be certain but it is quite possible this is a strategic stake. The businesses may be similar, or work together.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. For example, we've discovered 1 warning sign for ICICI Prudential Life Insurance that you should be aware of before investing here.

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.