ICICI Lombard is likely to be the first general insurance company to be listed on Indian stock exchanges. It is the largest private sector general insurer in India which is profitable.
ICICI Lombard General Insurance Co Ltd has filed for an initial public offering (IPO). It would be the first IPO by a non-life insurance company in Asia’s third-largest economy.
The company’s two main shareholders are – ICICI Bank Ltd and Fairfax Financial Holdings Ltd. They will sell a combined 19 percent stake in the insurer in the IPO, according to the filing released on Friday. The IPO involves dilution of up to 86,247,187 equity shares of face value of Rs 10 each of ICICI Lombard General Insurance.
ICICI Bank, India’s third-biggest lender by assets in the country. It owns about 63 percent of ICICI Lombard, and plans to sell up to a 7 percent stake, or 31.8 million shares, in the IPO.
Bankers estimate the IPO could raise Rs. 6,000 crore. It would be one of the biggest Indian IPOs in recent years. India’s IPO 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.
SBI Life Insurance Co Ltd is also gearing up for an IPO this year which bankers have said could raise as much as $1 billion. Non-life insurance companies owned by the Indian government also have plans to go public in 2017-18.
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