Receive up-to-the-minute news updates on the hottest topics with NewsHub. Install now.

ICICI Lombard Files For First Indian IPO By A Non-Life Insurer

15 July, 2017 5:18 AM
44 0
ICICI Lombard Files For First Indian IPO By A Non-Life Insurer

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

ICICI Lombard's two main shareholders - ICICI 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.

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

Fairfax, led by Canadian billionaire Prem Watsa, is selling about 12 percent, or 54.5 million shares, in ICICI 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 ICICI Lombard at Rs 20,300 crore.

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

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.

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

Also read: Reliance General inks bancassurance agreement with YES Bank

Source: profit.ndtv.com

Share in social networks:

Comments - 0