ICICI Lombard General Insurance shares made tepid debut stock exchanges today, opening down about 3% from the IPO price but soon recovered into green after the company recently winded up its Rs 5,700 crore public offer last week. The stock of ICICI Lombard General Insurance fell as much as 3.38% to hit the first day low of Rs 638.65 on NSE. Shares soon regained momentum and were trading up 3% at 671, it made a high of Rs 672. The initial share sale offer of ICICI Lombard was subscribed 3 times during 15 September – 19 September. For the ICICI 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.
ICICI Lombard raised about Rs 5,700 crores at the higher end of the price band. 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.
ICICI Lombard General Insurance is a joint venture between ICICI Bank and Canadian NRI Prem Watsa-promoted Fairfax Financial Holdings. 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.