Canada-based investment firm Fairfax Financial Holdings has offloaded 12.18 per cent in ICICI Lombard General Insurance to a clutch of investors, including Warburg Pincus, Tamarind Capital Pte and IIFL Special Opportunities Fund, for ₹2,473 crore.
In 2015, Fairfax Financial Holdings had increased its stake in the Indian insurance firm to 35 per cent by picking up an additional 9 per cent stake in ICICI Lombard for about ₹1,600 crore.
ICICI Lombard was then valued at ₹17,225 crore. The latest deal values the company at ₹20,303 crore.
Fairfax, led by India-born Canadian billionaire Prem Watsa, has been aggressive in India with investments across real estate, infrastructure and logistics sectors. Reducing its stake in ICICI Lombard could be part of a plan that will allow the Canadian firm to start a new general insurance joint venture in India.
Under existing rules, foreign investors cannot own more than 10 per cent of two insurance companies.
The Insurance Regulatory and Development Authority of India (IRDAI) has already given its initial approval to Fairfax’s new insurance venture.
To be established along with Oben General Insurance, Fairfax will have a 49 per cent stake in the venture.