ICICI Lombard General Insurance shares advanced over 4% on Wednesday, its first day of trading. ICICI Lombard made tepid debut stock exchanges today, opening down about 3% from the IPO price but it recoiled soon and traded higher. The company recently winded up its Rs 5,700 crore public offer last week. The stock of ICICI Lombard General Insurance rose as much as 6.6% to hit the first day high of Rs 694, before closing 4.45% higher at 680.1 on NSE.
About 3.46 crore shares were traded on NSE alone while only 59.12 lakh shares exchanged hands on BSE. On the basis of first trading day activity, NSE has set a price bank in range of Rs 520.9 to Rs 781.3. The company’s market capitalisation stood at Rs 30,938.85 crore as per today’s close. The initial share sale offer of ICICI Lombard was subscribed 3 times during 15 September – 19 September. For theICICI Bank group, this was the second public offer this fiscal. Its life insurance arm ICICI Prudential had raised Rs 6,000 crore through an IPO earlier.
Chanda Kochhar’s take
“Last year the first private life insurance company ICICI Prudential made its debut on the stock market which is the largest life Insurance company in private sector, today we bring in ICICI Lombard as the first general insurance company to list on stock exchanges,” Chanda Kochhar, MD and CEO of ICICI Bank said after listing. “The company works in with great synergy with ICICI Bank. ICICI Lombard General Insurance commended its journey more than 15 years ago. Over the years it has built strong product suite and strong distribution network, a very sustainable and prudent business model. The company has carried on the group ethos of innovation, of use of technology, of agility and so on,” Chanda Kochhar added.
Rs 5,700 crore IPO
ICICI Lombard raised about Rs 5,700 crores at the higher end of the price band of Rs 661. The stakeholders ICICI Bank and Fairfax Financial Holdings sold around 862.4 crore shares. ICICI Bank sold 317.6 crore shares to get Rs 2,099.40 crore while Fairfax raised Rs 3,601.50 crore by selling 544.8 crore shares. The ICICI Lombard IPO will see a dilution of over 19% stake, 7.15% of ICICI Bank and 12.27% of Fairfax.