The initial public offer (IPO) of ICICI Lombard General Insurance, the first by a nonlife insurer in India, was oversubscribed 1.97 times when the exercise closed yesterday, with bids for over 183 million equity shares against an issue size of 61.6 million shares, excluding anchor investors' portions.
The reserved portion of qualified institutional investors was oversubscribed by eight times while the retail category showed a subscription of 1.22 times and non-institutional investors 0.82 times.
The insurer is looking to raise INR57 billion (US$886.4 million) through its offer for sale, at the higher end of the price band of INR651-661 per share. The company last Thursday already raised INR16.25 billion from anchor investors. The IPO was launched on 15 September.
ICICI Lombard General, the country's largest private sector nonlife insurer, is a joint venture between ICICI Bank and Canada's Fairfax Financial Holdings. The two shareholders offered for sale 86.2 million shares (representing a 19% post paid-up equity). After the issue, the shareholding of Fairfax will reduce to 9.91% from 21.91% and ICICI Bank's stake will be cut to 55.92% from 62.92%.
Separately, SBI Life Insurance, a joint venture between the nation's biggest lender State Bank of India and France's BNP Paribas Cardiff, is set to open its IPO of up to INR84 billion for subscription today, in what could become India's largest public share offer in seven years.