ICICI Lombard allots shares worth $253m to anchor investors ahead of IPO

Photo: Pradeep Gaur/Mint

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.

This article was first published on LiveMint.com.

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.