ICICI Lombard General Insurance IPO: Issue gets 126% subscription, bidding ends later today

Private sector insurer ICICI Lombard General Insurance's initial public offer (IPO) was fully subscribed on the last day of the sale on Tuesday, NSE and BSE data showed. It is the second insurance company from the ICICI Group to go for an IPO after ICICI Prudential Life Insurance raised Rs 6,000 crore in an initial share sale last year.

This is the first public offering by an Indian life insurer.

The IPO received bids for 7,79,16,850 shares against the total issue size of 6,16,66,740 shares (1.26 times or 126 per cent), data available with the NSE till 1230 hours showed.

Also read: SBI Life Insurance, Prataap Snacks IPOs to hit market this week; eye Rs 8,882 cr

ICICI Lombard General Insurance is looking to raise around to raise as much as Rs 5,700 crore  ($888.40 million) at the higher end of the price band which is fixed between Rs 651-661 per share.

The company's IPO, which started on September 15, involves dilution of up to 86,247,187 shares by promoters-ICICI Bank and Fairfax.

Also read: ICICI Lombard General Insurance IPO: Here's what five brokerages are saying on the issue

The firm, which was founded in 2001, is among the largest general insurance companies in India.

Post the issue, the shareholding of Fairfax would fall to 9.91 per cent from 21.9 per cent now, while the same for ICICI Bank would be reduced to 55.95 from 62.95 per cent.

ICICI Lombard General Insurance had raised Rs 1,625 crore from anchor investors. CLSA India Private, Edelweiss Financial Services and JM Financial Institutional Securities are the book running lead managers of the IPO.