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.
So far this year, 19 companies, including BSE, Avenue Supermarts and Central Depository Services (India) Limited, have hit the market with their IPOs. Last week, Dixon Technologies and Bharat Road Network concluded their IPOs.
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.