ICICI Lombard raises Rs 1624.76 crore from anchor investors

Capital Market 

Allots to 64 anchor investors at Rs 661 per share

The initial public offer (IPO) of Lombard General Insurance Company (Lombard) opens for subscription today, 15 September 2017. The price band for the IPO has been fixed at Rs 651-661 per share. The issue closes on 19 September 2017.

Ahead of the opening of the IPO, the IPO committee of the board of directors of the company at its meeting held yesterday, 14 September 2017, finalized allocation of 2.45 crore equity in aggregate, to 64 anchor investors at Rs 661 per share. Anchor investors include Kuwait Investment Authority, BlackRock, Russell Investment Co., Abu Dhabi Investment Authority, SBI Life Insurance, Nomura, Amansa, Franklin Templeton, FIL Mauritius, Goldman Sachs, CitiGroup, HDFC Std Life Insurance and Master Trust Bank of Japan among others.

The offer comprises sale of up to 8.62 crore equity of the company, representing about 19% of its equity share capital for cash, through an offer for sale by Bank and FAL Corporation. The offer would constitute 19% of the post-offer paid-up equity share capital and the net offer shall constitute 18.05% of post-offer paid-up equity share capital.

The Offer for Sale (OFS) is of up to 3.17 crore equity by Bank and up to 5.44 crore by FAL. The entire proceeds from the OFS will be paid to selling shareholders.

Lombard is the largest private-sector non-life insurer in India based on gross direct premium income (GDPI) for last fourteen straight years, after being one of the first few private-sector companies to commence operations in the sector in FY2002.

Lombard's profit after tax rose 27.01% to Rs 641.82 crore on 35.82% total income to Rs 983.65 crore in the year ended 31 March 2017 over the year ended 31 March 2016.

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First Published: Fri, September 15 2017. 08:49 IST