ICICI Lombard IPO subscribed 98% on Day 2

The initial share sale offer of ICICI Lombard General Insurance Company was subscribed 98 per cent on the second day of bidding today, as per stock exchanges data.

The initial public offer (IPO), through which the insurer is looking to raise about Rs 5,700 crore, received bids for 6,01,87,028 shares against the total issue size of 6,16,66,740 shares, data available with the NSE showed.

The category for qualified institutional buyers (QIBs) was oversubscribed 2.37 times, non-institutional investors 10 per cent and retail 62 per cent.

The issue has received over half a million application on the second day of the offer, investment banking sources said.

ICICI Lombard General Insurance on Thursday had raised Rs 1,625 crore from anchor investors.

The company's IPO involves dilution of up to 86,247,187 shares by promoters -- ICICI Bank and Fairfax. The initial share sale offer will close tomorrow.

The insurer is looking to raise about Rs 5,700 crore at the higher end of the price band, which is fixed at Rs 651-661 per share.

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

ICICI Lombard General Insurance is a joint venture between ICICI Bank and Canadian NRI Prem Watsa-promoted Fairfax Financial Holdings.

For the ICICI Bank group, this is the second public offer this fiscal. Its life insurance arm ICICI Prudential had raised Rs 6,000 crore through an IPO earlier.

CLSA India Private, Edelweiss Financial Services and JM Financial Institutional Securities are the book running lead managers of the IPO.

(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)