ICICI Lombard General Insurance Company Limited is engaged in providing various general insurance products and services in India. They mainly offer fire, engineering, hull, aviation, motor, casualty, health, travel, energy, personal accident, marine, liability, home, rural, and credit insurance products and services. It was the largest private-sector non-life insurer in India based on gross direct premium income in fiscal 2017, a position it has maintained since fiscal 2004 after being one of the first few private-sector companies to commence operations in the sector in fiscal 2001. So in this post let’s find out the ICICI Lombard IPO review and let’s check the investment pros and cons of this public issue for my readers.
About ICICI Lombard IPO :
- IPO opens on – September 15, 2017
- IPO closes on – September 19, 2017
- Face value – Rs 10 Per Equity Share.
- Issue price – Rs.651 – Rs.661 Per Equity Share.
- Issue type – Book Built Issue IPO.
- Issue size – 86,247,187 Equity Shares of Rs 10 aggregating up to Rs 5,700.94 Cr
- Issue price – Rs 651 – Rs 661 Per Equity Share.
- Retail allocation – 35%
- Offer for sale – 86,247,187 shares (INR5,614.7 – 5,700.9 crore)
- Listing Exchange – BSE, NSE
- Draft Prospectus – Click Here
Objectives of the issue :
- To achieve the benefits of listing the Equity Shares of the Company on the Stock Exchanges.
- To carry out the sale of up to 86,247,187 Equity Shares by Shareholders.
- The “ICICI Lombard” brand name and provide liquidity to the existing shareholders.
About The Company-
- ICICI Lombard General Insurance Company Limited provide general insurance services to conglomerates, small and medium enterprises, state and central governments or government-owned enterprises, rural customers, and individual customers through various channels, such as agents, brokers, bancassurance, telesales, direct alliances and online platforms.
- They also provides reinsurance, insurance claims management, and investment management services.
- Competitive Strengths1. Consistent market leadership and demonstrated growth.
2. A diverse product line with multi – channel distribution network.
3. Robust risk selection and management framework.
4. Focus on investments in technology and innovation.
- Its distribution network enables us to reach customers in 618 out of 716 districts across India.
- The company was founded as a joint venture between ICICI Bank Limited, India’s largest private-sector bank.
Promoter of the company :
The Promoter of the Company is ICICI Bank.
ICICI Lombard IPO Review: Last year exactly one year ago another ICICI group company, ICICI Prudential Life Insurance had launched their IPO in the Indian stock markets. IPru IPO price was Rs. 300-Rs. 334 and the stock is now quoting at Rs. 437.40. That means this issue has given approximately 30%-45% returns to the investors. Investors can similarly expect a decent return on investment in the same group company. The current grey market premium is hovering around 45-50 rupees. Hence our ICICI Lombard IPO review has a BUY rating on this issue and recommends to invest for medium to long term. Last but not the least investors are advised to check the institutional bidding on the last day and take a final call on investment.