ICICI Lombard General Insurance Company's Rs 5,700 crore initial public offering was subscribed 0.27 times on the first day of the bidding on Friday.
The public issue of the general insurer received bids for 1.66 crore shares as of 5 pm against the 6.16 crore shares that were on offer, according to data shared by lead manager Axis Capital.
The segment reserved for high net worth individuals was subscribed 0.06 times, while the portion set aside for non-institutional buyers barely saw any demand. The retail investor category saw demand for 0.18 times the number of shares on offer and the portion allotted for ICICI Bank shareholders was subscribed 0.21 times.
Ahead of the IPO, ICICI Lombard which is the second insurance subsidiary of ICICI Bank to go public, raised Rs 1619.45 crore from 64 anchor investors.
The price band has been fixed at Rs 651-661 a piece. The proceeds of the offer will not go to the company as it's an offer by shareholders to part-sell their stake.
- ICICI Bank is selling 3.1 crore shares.
- An indirect subsidiary of Fairfax Financial Holdings is offloading 5.6 crore shares.
- ICICI Bank's holding will fall to 55.95 percent from 62.95 percent.
- Fairfax's stake will come down to 9.91 percent from 21.9 percent.
- Of the total 8.6 crore equity shares, 5 percent is reserved for ICICI Bank shareholders, reducing the net offer to 8.2 crore equity shares.
ICICI Lombard is a joint venture between private lender ICICI Bank Ltd. and Canada's Fairfax Financial Holdings. It will be the second insurance subsidiary of ICICI Bank to go public after its life insurance arm ICICI Prudential Life Insurance Company listed last year after a Rs 6,057-crore IPO.
The private insurer is among at least five insurers looking to go public, riding on a stock market rally and an increasing demand for financial assets in Asia's third largest economy. State-run general insurers – General Insurance Corp of India and New India Assurance Company – and private life insurance firms SBI Life and HDFC Standard Life have also lined up primary market offers.
Also Read: All You Need To Know About ICICI Lombard's IPO
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