Fairfax, which owns Lombard, sold its 12.18% stake in its Indian joint venture (JV), ICICI Lombard, to a consortium of three private equity investors led by Warburg Pincus on Saturday.

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The deal is valued at around Rs 2,500 crore, sources said.

For the Fairfax deal, the company has been valued at Rs 20,300 crore.

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ICICI Lombard's valuation was at Rs 17,000 crore in October 2015 when Fairfax had increased its stake in the company by 9%.

ICICI Lombard General said in a statement that in its board meeting on Saturday it has approved the proposed sale of around 12.18% shareholding in the company by Fairfax to Red Bloom Investment (9%), a company wholly owned by private equity funds managed by Warburg Pincus, Tamarind Capital (1.59%), a company wholly-owned by the Clermont Group and IIFL Special Opportunities Fund (1.59%), fund managed by IIFL Asset Management.

Post completion of the transaction, the share ownership in the Company of ICICI Bank and Fairfax will be around 63.31% and 22.13% respectively.

The transaction, as per company statement, is subject to governmental and regulatory approvals.