ICICI Lombard sees weak debut

Shares of ICICI Lombard General Insurance Company were trading at Rs 660.10 at 10:19 IST on BSE, a discount of 0.14% over the initial public offer price of Rs 661.

The stock debuted at Rs 650, a discount of 1.66% to the initial public offer (IPO) price. So far the stock hit a high of Rs 660.50 and low of Rs 638.15. On BSE, so far 16.77 lakh shares were traded on the counter.

The IPO of ICICI Lombard General Insurance Company (ICICI Lombard) opened for subscription on 15 September 2017 and closed on 19 September 2017. The price band for the IPO was set at Rs 651-661 per share.

The IPO received bids for 18.35 crore shares and it was subscribed 2.98 times. Qualified institutional buyers (QIBs) category was subscribed 8.17 times. The retail individual investors category was subscribed 1.23 times. The non institutional investors category was, however, undersubscribed. It was subscribed just 0.83 times.

The offer comprised 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. The offer would constitute 19% of the post-offer paid-up equity share capital and the net offer shall constitute 18.05% of post-offer paid-up equity share capital.

The Offer for Sale (OFS) was of up to 3.17 crore equity shares by ICICI Bank and up to 5.44 crore shares by FAL. The entire proceeds from the OFS will be paid to selling shareholders.

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.

ICICI Lombard's profit after tax rose 27.01% to Rs 641.82 crore on 35.82% total income to Rs 983.65 crore in the year ended 31 March 2017 over the year ended 31 March 2016.

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