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ICICI Lombard files for first Indian IPO by a non-life insurer

Reuters  |  MUMBAI 

By Devidutta Tripathy

(Reuters) - Lombard General Co Ltd has filed for an initial public offering (IPO) of in what would be the first by a non-life company in Asia's third-largest economy.

Lombard's two main shareholders - Bank Ltd and Fairfax Financial Holdings Ltd - will sell a combined 19 percent stake in the insurer in the IPO, according to the filing released on Friday. (http://bit.ly/2uqYrTh)

Bankers estimate the could raise 60 billion rupees ($932 million), making it one of the biggest Indian IPOs in recent years. India's market has been on a roll with companies raising $2.6 billion in the first half of 2017, after $4 billion in 2016, the best year for IPOs in six years.

Bank, India's third-biggest lender by assets which owns about 63 percent of Lombard, plans to sell up to a 7 percent stake, or 31.8 million shares, in the

Fairfax, led by Canadian billionaire Prem Watsa, is selling about 12 percent, or 54.5 million shares, in Lombard, the largest private sector non-life insurer in India.

It owns about 22 percent of the insurer, after it sold a 12.2 percent stake in May to investors including Warburg Pincus. That deal had valued Lombard at 203 billion rupees.

Fairfax, which is setting up a new joint venture in India, needs to bring its stake in Lombard to below 10 percent to comply with regulations.

SBI Life Co Ltd is also gearing up for an this year which bankers have said could raise as much as $1 billion. Non-life companies owned by the Indian government also have plans to go public in 2017-18.

Bank of America Merrill Lynch, Securities, IIFL Holdings are leading six banks on the Lombard CLSA, Edelweiss and JM Financial are the other banks on the deal.

($1 = 64.3850 rupees)

(Reporting by Devidutta Tripathy; editing by David Clarke)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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