ICICI Lombard shares gain traction in grey market as IPO nears

ICICI Bank’s nod to the initial public offering (IPO) of its general insurance subsidiary, ICICI Lombard, has given a boost to the latter’s share prices in the grey market. According to sources, Lombard’s share price has surged to Rs 550 per share, from Rs 450 a week ago. Notably, Fairfax’s recent 12 per cent stake sale in Lombard has bumped up its valuation to Rs 20,300 crore. In 2015, Lombard was valued at Rs 17,200 crore, based on Fairfax’s purchase of a nine per cent stake in the company. 

Ashley Coutinho

More AMCs plan to go public
 
Last week, the Anil Ambani-led Reliance Capital announced a plan to list its asset management company, Reliance Nippon Asset Management (RNAM), before March 2018. It appears RNAM might not be the only major fund house planning an initial public offering (IPO). Sector buzz has it that both HDFC Mutual Fund and SBI Mutual Fund are also likely to initiate plans to go public. UTI Mutual Fund’s intention to do so is known. As four of the top 10 fund houses have plans to list, the question is who will hit the market first.

Chandan Kishore Kant

Premium for new IPOs in grey market
 
Shares of communications product company Tejas Networks and pharma company Eris Lifesciences are changing hands at a premium of around 20 per cent each in the grey market, ahead of their initial public offerings (IPOs). Tejas’ Rs 777-crore IPO and Eris’ Rs 1,741-crore IPO will open on Wednesday and Friday, respectively. “The new IPOs are trading at a decent premium, considering the performance of the last three listings was lukewarm,” said a broker.   

Samie Modak