India has already seen $3.2 billion in IPOs this year, according to Thomson Reuters data, and looks set to easily surpass the $4 billion raised in 2016, the best year in six, led by a spate of upcoming listings from insurers. Percentage-wise, this translates to 19 per cent stake – 7.15 per cent of ICICI Bank and 12.27 per cent of Farifax.
ICICI Lombard General Insurance Company has set Rs 651-661 as the price band for its initial public offering (IPO), which will make it a Rs 5,700-crore issue. The insurer will take orders on September 15-19. It now has about 8.4 per cent market in the general insurance industry and about 18 per cent among private non-life insurers.
Commenting on the listing process, Bhargav Dasgupta, Chief Executive of ICICI Lombard, said the company’s combined ratio as of end June was 102.4 per cent and hence there was no immediate requirement of capital.The claim ratio of the company now stands at 80 per cent, he said, adding, “Around 15-20 per cent growth rate in the overall premium was expected for the industry for the current fiscal.”ICICI Securities, Bank of America Merrill Lynch and IIFL are the bankers to the issue.Issue earlier this week, ICICI Lombard had got the Sebi approval to launch the issue”.
Relatively lower insurance penetration and rising income levels helping people buy more insurance products in Asia’s third-largest economy, raising the outlook for the sector.
Two state-run general insurers-General Insurance Corp of India and New India Assurance Company-as also two life insurance firms (SBI Life and HDFC Standard Life) have also lined up IPO plans and are awaiting Sebi’s approval.