The initial public offer (IPO) of ICICI Lombard General Insurance, which closed for subscription on Tuesday, was subscribed 2.97 times on the last day till the time of going to press. Bids were received for 18.31 crore equity shares as against 6.17 crore equity shares on offer in the price band of ₹651 to ₹661. ICICI Lombard is the largest non-life private sector insurer in India. It is a joint venture between ICICI Bank and Fairfax Financial Holdings of Canada.
Meanwhile, the institutional portion was subscribed 8.17 times while that reserved for retail and high net worth individuals was subscribed 1.2 times and 0.82 times, respectively.
Just a day before the issue, the general insurance entity issued 2.45 crore equity shares to a total of 64 entities as part of the anchor portion allocation for an aggregate amount of ₹1,625 crore. Institutional entities like Nomura, Blackrock, BNP Paribas, HSBC, HDFC Standard Life, Societe General, SBI Life Insurance, Franklin Templeton and Reliance Mutual Fund, among others, were part of the anchor allocation.
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Most market participants have been bullish on the issue citing strong fundamentals and growth potential.
“While on the reported numbers it might appear to be fairly valued, we believe with strong potential to deliver high double-digit growth for next multiple years, the issue looks decently priced, and hence we have a subscribe rating on the issue,” said Angel Broking in its report. Close on the heels of ICICI Lombard, SBI Life Insurance Company will enter the capital market with its ₹8,400 crore public issue which opens for subscription on Wednesday.