Initial public offering (IPO) bound ICICI Lombard General Insurance Co. Ltd on Thursday said it has raised Rs1,624 crore by allowing shares to institutional investors as part of its anchor book allocation.
Shares were allocated to 64 investors at Rs661 per share, the upper end of the price band of Rs651-661 that the company has fixed for the initial share sale.
The IPO opens on 15 September and will close on 19 September.
Institutional investors that participated in the anchor book allocation include BlackRock, Kuwait Investment Authority, Russell Investment Co., Abu Dhabi Investment Authority, SBI Life Insurance among others.
Founded in 2001, ICICI Lombard is the first non-life insurance company to file for an IPO. The initial share sale, a pure offer for sale, will see stakeholders ICICI Bank Ltd and Fairfax Financial Holdings Ltd sell around 86.24 million shares.
At the upper end of the price band, the share sale will fetch the two institutions a total of Rs5,700 crore. ICICI Bank will get Rs2,099.40 crore selling 31.76 million shares, while Fairfax will fetch Rs3,601.50 crore for its 54.48 million 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 offers a range of insurance products such as motor, health, crop/weather, fire, personal accident, marine, engineering and liability insurance, through multiple distribution channels.
ICICI Lombard General Insurance is the second insurance company from the ICICI group to go public. Last year, ICICI Prudential Life Insurance Co. Ltd raised Rs6,000 crore in an initial share sale, the first public offering by an Indian life insurance company. ICICI Bank sold a 12.63% stake through that IPO, which valued the life insurer at around Rs48,000 crore.