Fairfax, which owns Lombard, sold its 12.18 per cent stake in its Indian JV, ICICI Lombard, to a consortium of three private equity investors led by Warburg Pincus on Saturday.
The deal is valued at around Rs 2,500 crore, sources said.
For the Fairfax deal, the company has been valued at Rs 20,300 crore. ICICI Lombard's valuation was at Rs 17,000 crore in October 2015 when Fairfax had increased its stake in the company by 9 per cent.
ICICI Lombard General said in a statement that in its board meeting today it has approved the proposed sale of around 12.18 per cent shareholding in the company by Fairfax to Red Bloom Investment (9 per cent), a company wholly owned by private equity funds managed by Warburg Pincus, Tamarind Capital (1.59 per cent), a company wholly owned by the Clermont Group and IIFL Special Opportunities Fund (1.59 per cent), fund managed by IIFL Asset Management.
Post completion of the transaction, the share ownership in the Company of ICICI Bank and Fairfax will be around 63.31 per cent and 22.13 per cent respectively.
The transaction, as per company statement, is subject to governmental and regulatory approvals.
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