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ICICI Lombard sets IPO price band, looks to raise Rs 5,700 crore

ICICI Bank, the majority shareholder of ICICI Lombard, will dilute 31,761, 478 of its equity shares

Subrata Panda  |  Mumbai 

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ICICI Lombard, a joint venture between and Fairfax Financial Holdings, has set a price band of Rs 551-661 a share for its ICICI Bank, the holding company of General Insurance, has announced its general arm will be open for subscription to the public via an (IPO) on September 15. The shall close on September 19.

At the upper end of the price band, the share sale will fetch Rs 5,700 crore, according to merchant banking sources.

Earlier this week, got Sebi's go ahead for the IPO, which would be the first by a general insurer in the country. Two state-run general insurers — General Corp of India and Company — as also two life firms (SBI Life and HDFC Standard Life) have also lined up plans and are awaiting the Sebi’s approval.

In the Draft Red Herring Prospectus (DRHP) filed with Sebi, the insurer said it would offer 86,247,187 equity shares, at a face value of Rs 10 per share, representing about 19 per cent of its ICICI Bank, the majority shareholder of ICICI Lombard, will dilute 31,761, 478 of its equity shares, while FAL Corp, a unit the Canada-based Fairfax Financial Holdings, will dilute up to 54,485,709 equity shares. 

Around five per cent of the total shares offered for dilution, that is 4,312,359 equity shares, will be reserved for shareholders.

Earlier, Fairfax had sold 12.18 per cent in to private equity firms Warburg Pincus (nine per cent), Clermont Group (1.59 per cent) and IIFL Special Opportunities Fund (1.59 per cent). After the sale, the share ownership in of and Fairfax will be approximately 63 per cent and 22 per cent, respectively.

This is the second company of the ICICI group to list. ICICI Prudential Life insurance, a subsidiary of ICICI Bank, got listed last year. It sold 12.63 per cent stake via an and was valued at Rs 48,000 crore.

(With PTI inputs)

First Published: Fri, September 08 2017. 01:42 IST