ICICI Lombard made a tepid debut on the bourses on Wednesday. The stock got listed at Rs 650, a discount of 1.6% to its issue price. However, the stock recovered and ended the session at Rs 681.55, a rise of 3.11% from its issue price. The initial public offering of ICICI Lombard was subscribed 2.96 times on the concluding day of the offer with investors bidding for 18.24 crore shares of the 6.16 crore on offer. The issue received bids for 13.39 crore shares from the qualified institutional buyers, of their quota of 1.63 crore shares. High net-worth individuals bid for 1.01 crore shares of the 1.22 crore shares reserved for them, bidding 0.83 times.
Retail investors bid for nearly 1.19 times, or 3.41 crore shares, of the 2.86 crore reserved. ICICI Bank shareholders, who were reserved 43.12 lakh shares, bid for 42.56 lakh shares. ICICI Lombard raised about Rs 1,625 crore from 64 anchor investors. 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. ICICI Lombard General Insurance, the largest private sector non-life insurer in India, was planning to raise around Rs 5,700 crore from its IPO. The company had set a price band of `651-661 per share for its IPO and when calculated at the upper band of the issue price, the company was valued at Rs 30,000 crore.
The offer constituted 19% of the post-offer equity share capital, which include 7% by ICICI Bank and 12% by Fairfax Financial Holding. 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 had reserved 43.12 lakh shares for ICICI Bank shareholders. This issue is a pure offer for sale (OFS) and the Company will not receive any proceeds. ICICI Lombard General Insurance is having a market share of 10.05% in the non-life insurance industry as on July 2017, shows the data from 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 3,321 crore. In 2017, 23 companies raised Rs 30,115 crore through IPO. Listing gains and returns by newly-listed companies and 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 were some of the companies who completed their IPO in the last eight months.