ICICI Bank said the initial public offer of its insurance unit ICICI Lombard is priced at Rs 661 per share.
The total amount to raised will Rs 5,701 cr. The initial price band was Rs 651-661.
The IPO comprises the shares that are being sold by ICICI Bank and FAL Corporation in the insurance company, and as such, all the money will go to the above two shareholders.
5% of the 86 mln shares shares in the IPO will be reserved for purchase by ICICI Bank shareholders, at at Rs 661. This will raise about Rs 285 cr.
Established in 2001, ICICI Lombard General Insurance Company is a joint venture between the bank and Fairfax Financial Holdings Limited- a financial services company based in Toronto.
ICICI bank had 64% stake in the venture while Fairfax had 35% in the joint venture.
ICICI General’s Gross Written Premium (GWP) was Rs 109.60 billion in fiscal 2017.
The company maintained its market leadership in the private sector with an overall market share of 8.4%.
The company witnessed an increase in policy volumes by 12.21% from 15.80 million in fiscal 2016 to 17.73 million in fiscal 2017.
The company offers general insurance, reinsurance, insurance claims management and investment management.