ICICI Lombard IPO is one of the most anticipated initial public offers of this year. The Rs 5,700 crore issue will be the first by any general insurance company in India to hit the Street. It will open on September 15 and close on September 19. Through this IPO, the promoters will dilute up to 86,247,187 equity shares with a face value of Rs 10 each of ICICI Lombard. The price band of the IPO has been fixed in the range of Rs 651- Rs 661 per equity share. ICICI Lombard is a joint venture between ICICI Bank and Canada-based Fairfax Financial Holdings Ltd.
Over 8.6 crore equity shares will be sold as part of the IPO, which will include ICICI Bank selling over 3 crore shares and the rest from Fairfax. This is the second insurance arm from the ICICI Bank group to list, after the Rs 6,000-crore listing of its life arm earlier.
Bank of America Merrill Lynch, along with ICICI Securities and IIFL are the bankers to the issue, which will be open till September 19.
Two state-run general insurers - General Insurance Corp of India and New India Assurance Company - and also two life insurance firms (SBI Life and HDFC Standard Life) have also lined up IPO plans and are awaiting Sebi's approval.
Three IPOs will hit the Street this week. Matrimony.com's Rs 500 crore IPO opened today. The IPO will be open for three days through Wednesday. Matrimony.com is offering a discount of Rs. 98 to employees and retail investors.
Engineering firm Capacit'e Infraprojects' Rs 400 crore IPO will be launched on September 13. The issue, with a price band of Rs 245-Rs 250 per equity share, will close on September 15.
In a bid to offer more choices to customers, regulator Irdai has allowed all general insurers to sell motor cover policies through auto dealer networks by offering differential pricing. The move, under the new guidelines will offer customers choices in terms of pricing apart from increase competition among insurers to offer best price to customers.
Earlier, it was mandatory for a customer to buy an auto insurance from an insurer with whom the auto dealer already has an exclusive arrangement. Also, insurers were not allowed to offer differential pricing which would reward good customers and ensure higher premium for bad customers.
"The new guidelines are good as they bring robustness to the sector as this segment is responsible for over 40 per cent of our premium income," ICICI Lombard managing director and chief executive Bhargav Dasgupta said.