ICICI Lombard General Insurance Company‘s Rs 5,700-crore initial public offering has been fully subscribed on Tuesday, the final day.
The objects of the offer are to achieve the benefits of listing the equity shares on the stock exchanges and to carry out the sale of up to 86,247,187 equity shares by the selling shareholders. It is the second insurance company from the ICICI Group to go for an IPO after ICICI Prudential Life Insurance raised Rs 6,000 crore in an initial share sale past year.
The share sale was oversubscribed about 2.93 times, reflecting the boom in India’s primary market heading for a record this fiscal year.
ICICI Lombard is the largest private-sector non-life insurer in India based on gross direct premium income (GDPI) for last fourteen straight years, after being one of the first few private-sector companies to commence operations in the sector in FY2002. The retail portion was undersubscribed with bids of 11 million shares, or 0.36 times the 29 million shares on offer for that category.
ICICI Lombard General Insurance had raised Rs 1,625 crore from anchor investors. Among other general insurance companies, General Insurance Corp of India and New India Assurance Company are also planning to come up with their IPOs.
Insurers are lining up IPOs after the India previous year eased rules related to foreign holdings in insurance companies. This provides enough growth headroom to Indian non-life insurance players, it said.
The insurer is looking to raise about Rs 5,700 crore at the higher end of the price band which is fixed at Rs 651-661 per share.
The offer comprises sale of up to 8.62 crore equity shares of the company, representing about 19% of its equity share capital for cash, through an offer for sale by ICICI Bank and FAL Corporation.