ICICI Lombard files DRHP for IPO with market regulator

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Private general insurer ICICI Lombard General Insurance has filed the draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for a public offer. The offer includes upto 86.24 million equity shares of face value of Rs 10 each.

ICICI Prudential Life Insurance is the only listed insurance company in India, which is also a subsidiary of ICICI Bank.

The offer represents approximately 19 percent of the company's equity share capital, for cash through an offer for sale of up to 31.76 million equity shares by ICICI Bank and up to 54.48 million equity shares by FAL Corporation (wholly owned subsidiary of Fairfax), according to a notification on the stock exchanges. The insurer is a joint venture between ICICI Bank and Fairfax Financial Holdings.

The offer includes a proposed reservation of up to 4,312,359 equity shares (5 percent of the offer) for individual and Hindu Undivided Family (HUF) shareholders of ICICI Bank.

In May 2017, Fairfax announced that its wholly owned subsidiary, FAL Corporation, has agreed to sell 12.18 percent of the fully diluted shares of ICICI Lombard General Insurance to Red Bloom Investment Ltd (9 percent), a company wholly owned by private equity funds managed by Warburg Pincus LLC, Tamarind Capital Pte. Ltd (1.59 percent) — wholly owned by the Clermont Group, and IIFL Special Opportunities Fund (1.59 percent).

The proposed transaction had valued ICICI Lombard at Rs 20,300 crore.

This is likely to be the first general insurance company to be listed on the stock exchanges. ICICI Lombard is the largest private sector general insurer and is profitable.

The gross written premium of ICICI Lombard increased by 32 percent from Rs 8,296 crore in FY16 to Rs 10,960 crore in FY17. The profit after tax of ICICI General was Rs 702 crore in FY17 compared to Rs 507 crore in FY16.