ICICI Lombard General Insurance shares will debut on exchanges tomorrow after the company winded up its Rs 5,700 crore public offer last week. 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.
The insurer fixed the price band at Rs 651-661 per share for the Rs 5,700-crore IPO. ICICI Lombard raised about Rs 5,700 crores at the higher end of the price band. The initial share sale will see stakeholders ICICI Bank and Fairfax Financial Holdings which 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.
Chanda Kochhar’s take
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.”