The initial public offering (IPO) of ICICI Lombard General Insurance Company was Rs.5700 crore. It was oversubscribed by 2.97 times on the last day, September 19th, of the bidding. The total issue size of the share was 6,16,66,740 shares. However, the insurance company received bids for 18,32,25,306 shares, pricing its shares at Rs.651 – 661 per share.
ICICI Lombard had raised a total of Rs.1625 crore from anchor investments. They included Kuwait Investment Authority Fund, Societe Generale, BlackRock, Goldman Sachs India, Citigroup Global Markets Mauritius, Nomura Trust and Banking Co, HSBC Indian Equity Mother Fund, ParibasBSE 5.77 % Equity Fund and DSP BlackRock.
Stock Broking Firm, Prabhudas Lilladher said, “At the upper end of the price band, the company trades at 46.5 times its March 2017 earnings per share (EPS) which implies that it is fully priced.” The firm also added that the return on equity is likely to stay strong at 18-20%.
ICICI Lombard General Insurance is a joint venture between Fairfax Financial Holdings, a Canadian based company, and ICICI Bank. After the IPO issue, the shareholding of Fairfax will drop to 9.91% from the existing 21.91% and the shareholding of ICICI Bank will deplete to 55.92% from its existing 62.92%.