ICICI Lombard General Insurance Company Limited is the private-sector non-life insurer in India based on gross direct premium income. The firm is a joint venture with ICICI Bank Limited. ICICI Lombard General Insurance is the second insurance company from the ICICI group to go public. Last year, ICICI Prudential Life Insurance Co. Ltd raised Rs 6,000 crore in an initial share sale, the first public offering by an Indian life insurance company. Now, ICICI Lombard General Insurance Company Limited going to introduce their initial public offer which will hit the primary market on 15th September, 2017 and closes on 19th September, 2017. The company aims to raise around Rs. 1,468.11 crore by offering shares at Rs 651 – Rs 661 Per Equity Share.
ICICI Lombard General Insurance Company Limited was incorporated at Mumbai on October 30, 2000. They are one of the first few private-sector companies to commence these operations. They offer their customers diversified range of products including motor, health, crop/weather, fire, personal accident, marine, engineering and liability insurance, through multiple distribution channels.
They were founded as a joint venture between ICICI Bank Limited and Fairfax Financial Holdings Limited at March 31, 2017. ICICI Bank Limited is India’s largest private-sector bank in terms of consolidated total assets with an asset base of Rs.9.9 trillion and Fairfax Financial Holdings Limited are a Canadian based holding company which, through its subsidiaries, is engaged in property, casualty insurance, reinsurance and investment management with US $43.38 billion of total assets.
The Indian non-life insurance industry was the 15th largest non-life insurance market in the world and the fourth largest in Asia in terms of gross direct premium income. In fiscal 2017, they issued approximately 17.7 million policies.
Their main distribution channels are direct sales, individual agents, bank partners, other corporate agents, brokers, and online, through which they service their individual, corporate and government customers. Their distribution network enables them to reach customers in 618 out of 716 districts across India.
- Motor Insurance– Motor insurance in India is broadly divided into two categories: own damage and third-party. Own damage motor insurance protects a vehicle owner from damage or theft to his/her own motor vehicle. On the other hand, third-party motor insurance, which protects all third parties from damages suffered due to an accident involving a motor vehicle.
- Health and Personal Accident Insurance
- Crop/Weather Insurance– Crop/weather insurance is purchased by farmers to protect themselves against reduction in their crop yield or loss of their crops due to natural phenomena like inadequate or excessive rainfall, hailstorm, landslides and variation in temperature and humidity.
- Fire Insurance– Fire insurance covers damage or loss to property because of fire, riot, strike, earthquake, storm, flood, and certain other natural catastrophes.
- Marine Insurance– Marine insurance insures goods that are being transported, by land or by sea, and the insurance of ships, boats and offshore structures.
- Engineering Insurance– Engineering insurance refers to the insurance that provides coverage for risks faced by an ongoing construction project, installation project, and machines and equipment used in such project.
- Other Insurance– Travel insurance, Aviation insurance, Credit insurance, Home insurance, Liability insurance, Burglary insurance, money insurance, fidelity insurance, baggage insurance, event insurance and art insurance.
Some of the qualitative factors which form the basis for computing the Offer Price are:
- Consistent market leadership and demonstrated growth.
- Diverse product line with multi-channel distribution network.
- Delivering excellence in customer value.
- Robust risk selection and management framework.
- Focus on investments in technology and innovation.
- Strong investment returns on a diversified portfolio.
- Superior operating and financial performance.
- Experienced senior management team and enabling work culture.
- Leverage and enhance market leadership
- Enhance product offerings and distribution channels
- Capture new market opportunities
- Further improve operating and financial performance
- Continue to invest in technology and innovation
Objects of the Issue:
The objects of the Offer are:
- To achieve the benefits of listing the Equity Shares of the Company on the Stock Exchanges;
2. To carry out the sale of up to 86,247,187 Equity Shares by the Selling Shareholders; and
3. Enhance the “ICICI Lombard” brand name and provide liquidity to the existing shareholders.
ICICI Lombard IPO Listing and Allotment:
- Bid/Offer Opens On: September 15, 2017
- Bid/Offer Closes On: September 19, 2017
- Basis of Allotment: September 22, 2017
- Refunds: September 25, 2017
- Credit to demat accounts: September 26, 2017
- Listing: September 27, 2017
You can find the allotment status for ICICI Lombard IPO.
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