Shares of market debutant, ICICI Lombard, witnessed a tepid listing as the stock listed at Rs 651 on the NSE.
However, the stock fell over 3 percent to lows of Rs 638.65, before witnessing a strong recovery of around 5 percent.
The Rs 5,700-crore public issue, which opened between September 15-19, had a price band at Rs 651-661 per share.
Analysts had not expected strong listing gains as the initial share sale offer that ended last week was oversubscribed 3 times. In addition, equity markets have been subdued from last week, they said.
The reserved portion of qualified institutional investors has oversubscribed 8.17 times while the retail category showed a subscription of 1.22 times and non-institutional investors 0.82 times.
ICICI Lombard General Insurance is a joint venture between ICICI Bank and Canadian NRI Prem Watsa-promoted Fairfax Financial Holdings.
The initial public offering of up to 8,62,47,187 equity shares comprised of an offer for sale of up to 3,17,61,478 shares by ICICI Bank and up to 5,44,85,709 shares by FAL Corporation (a nominee of Fairfax), constituting 19 percent of post-offer paid-up equity share capital.
Post issue, the holding of ICICI Bank and FAL, the selling shareholders, reduced to 55.92 percent from 62.92 percent and to 9.91 percent from 21.91 percent, respectively.
This was the second public offer from the ICICI Bank group. Its life insurance subsidiary ICICI Prudential had raised Rs 6,000 crore through an IPO in September 2016.
The global coordinators and book running lead managers to the offer were DSP Merrill Lynch, ICICI Securities and IIFL Holdings while the book running lead managers were CLSA India, Edelweiss Financial Services and JM Financial Institutional Securities.