ICICI Lombard rallies 5% after lukewarm listing

ICICI Lombard rallies 5% after lukewarm listing

Shares of ICICI Lombard General Insurance Company made a tepid debut at bourses today, falling almost 2 per cent from the issue price of Rs 661. So far the stock hit a high of Rs 660.50 and low of Rs 638.15.

The scrip debuted at Rs 650 on BSE, a 1.66 per cent discount to issue price of Rs 661.

The BSE's 30-stock benchmark Sensex dropped 1.4%, extending losses for the seventh straight day. ICICI Lombard made tepid debut stock exchanges today, opening down about 3% from the IPO price but it recoiled soon and traded higher. Upon completion of the transaction, Fairfax's share ownership in ICICI Lombard will be approximately 9.9%. The company fixed the final issue price at Rs 661 a share.

The initial public offer (IPO), through which the insurer is looking to raise about Rs 5,700 crore, received bids for 6,01,87,028 shares against the total issue size of 6,16,66,740 shares, data available with the NSE showed.

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ICICI Lombard was set up in 2001, after the Indian insurance industry opened up to private players. It holds 18.0% share among private sector non-life insurers in the country, and manages Rs16,450 crore of investment assets.

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 proposal was approved on 1 September. ICICI Lombard General Insurance is a joint venture between ICICI Bank and Canadian NRI Prem Watsa-promoted Fairfax Financial Holdings.

ICICI Lombard is expected to benefit from strong growth in the non-life insurance sector.

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