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ICICI Lombard IPO to open for subscription from Sept 15

Price band to be declared five days before the offer goes live

Subrata Panda  |  Mumbai 


ICICI Bank, the holding company of General Insurance, has announced that its general insurance arm will be open for subscription via an initial public offering (IPO) on September 15. The subscription for is slated to close on September 19.

The price band of the offer as decided by and the selling stakeholders, in consultation with the lead managers, is expected to be announced five days before the opens for subscription, said the bank in a filing.

In its draft red herring prospectus (DRHP) submitted to the Securities and Exchange Board of India (SEBI), the insurer said it would offer 86,247,187 equity at a face value of Rs 10 per share, representing around 19 per cent of its equity share capital.

ICICI Bank, the majority shareholder of ICICI Lombard,  will dilute 31,761, 478 of its equity share, while FAL Corp– a unit of Financial Holdings– will dilute up to 54,485,709 equity

Around 4,312,359 equity shares, or 5 per cent of the total sale offer, will be reserved for the shareholders of

Earlier, Financial Holdings had sold around 12.18 per cent of its stake 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, held around 63 per cent stake in ICICI Lombard, while Fairfax’s holding came down to 22 per cent. 

This is the second insurance company of the ICICI group that has opted to offer to the public. Life insurance, a subsidiary company of ICICI bank, got listed last year. It sold 12.63 per cent stake via an and was valued at Rs 48,000 crore.

First Published: Thu, September 07 2017. 16:13 IST