ICICI Lombard General Insurance IPO will launch its Rs 5,700 crore IPO on September 15. This issue is one of the five mega insurance IPOs which will collectively raise up to Rs 40,000 crores. Highlighting the strengths of the company, Chanda Kochhar, the CEO of ICICI bank told ET Now on Friday, “This is the largest private sector non-life insurance company growing at a very robust space with a very sustainable model and has been generating, for the past two three years, a ROE of more than 15% and a very good track record. In that sense, this really becomes an attractive investment for the investors.” Here are four key details to watch out for in the ICICI Lombard General Insurance IPO.
The company looks to raise about Rs 5,700 crores at the higher end of the price band which is set between Rs 651-661 per share. The IPO will launch on September 15 and close on September 19. The initial share sale will see stakeholders ICICI Bank Ltd and Fairfax Financial Holdings Ltd sell around 86.24 million shares. ICICI Bank looks to sell 31.76 million shares to get Rs 2,099.40 crore while Fairfax will look to raise Rs 3,601.50 crore by selling 54.48 million shares. The ICICI Lombard IPO will see a dilution of over 19% stake—7.15% of ICICI Bank and 12.27% of Fairfax.
About the company
ICICI Lombard GIC was founded in 2001 and is one of the leading private sector general insurance companies in India with a Gross Written Premium (GWP) of Rs 109.60 billion for the year ended March 31, 2017. It offers a range of insurance products such as motor, health, crop/weather, fire, personal accident, marine, engineering and liability insurance, through multiple distribution channels.
ICICI group earlier insurance IPOs
ICICI Lombard General Insurance is the second insurance company from the ICICI group to go in for an IPO. Last year, ICICI Prudential Life Insurance raised Rs 6,000 crore in an initial share sale, the first public offering by an Indian life insurance company.
Chanda Kochhar, Chairperson of ICICI Lombard’s expectation from the IPO
In conversation with ET Now, Chanda Kochhar, Chairperson ICICI Lombard GIC said, “I really cannot comment on the returns going forward but if you go by an example, last year we did an IPO of our life insurance company and if you see the track record there so far for those investors the group has delivered a 33% annualised return just in this last year.”