ICICI Lombard General Insurance Company raised about Rs 1,625 crore from 64 anchor investors on Thursday, a day before its initial public offering (IPO) opens for subscription. The investors who acquired shares through anchor allotment include The Nomura Trust, Blackrock India Equities, SBI Life Insurance, Citigroup Global Markets, SBI Life, BNP Paribas Insurance among others.
The country’s largest private sector non-life insurer is planning to raise around Rs 5,700 crore from its IPO, which is scheduled to close on September 19.
The company has set a price band of Rs 651-661 per share for its IPO. When calculated at the upper band of the issue price, the company will be valued at Rs 30,000 crore.
The offer constitutes 19% of the post offer equity share capital, which will include 7% by ICICI Bank and 12% by Fairfax Financial Holding Limited. ICICI Bank will get Rs 2,099.40 crore selling 3.17 crore shares, while Fairfax will fetch Rs 3,601.50 crore for its 5.4 crore shares. The company has reserved 43.12 lakh shares for ICICI Bank shareholders. Bids can be made for a minimum of 22 equity shares and multiples of 22 thereof.
This issue is a pure offer for sale (OFS) and the company will not receive any proceeds.
ICICI Lombard has a market share of 10.05% in the non-life insurance industry as on July 2017, showed data from the Insurance Regulatory and Development Authority of India (Irdai). In FY 17 the company issued approximately 1.77 crore policies and their gross direct premium was Rs 10,725 crore. For the three months ended June 2017, the company issued 52 lakh policies and their gross direct premium income was Rs 3321 crore.
In 2017, companies raised Rs 16,254 crore through IPOs. Listing gains and returns by newly listed companies as also the positive sentiment in the broader market are among the reasons attributed to the trend. BSE, HUDCO, CDSL, Avenue Supermarts, Shankara Building Products, S Chand and Company, and Cochin Shipyard are some of the companies who completed their IPOs in the last eight months.