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ICICI Bank and Fairfax Financial Holdings, two principal shareholders in ICICI Lombard General Insurance, have decided to partially divest their shareholding in the general insurer, taking it public via an IPO under an offer-for-sale route.
The board of ICICI Lombard on Monday approved the OFS, subject to market conditions and regulatory approvals. The size and other details of the offer would be determined in due course, according to the general insurer.
Fairfax’ earlier dilution Fairfax Financial Holdings will do the dilution through its affiliate FAL Corporation. As of end May, ICICI Bank had a 63.31 per cent stake and Fairfax had a 22.13 per cent stake in ICICI Lombard.
It may be recalled that Canada-based investment firm Fairfax Financial Holdings had recently offloaded 12.18 per cent stake 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.
That transaction valued ICICI Lombard at ₹20,303 crore, higher than the enterprise value of ₹17,225 crore in 2015 when Fairfax had picked up an additional 9 per cent stake (for about ₹1,600 crore) to raise its shareholding in the general insurer to 35 per cent.
In a separate filing with the stock exchanges on Monday, ICICI Bank said its board has approved the sale of a part of its shareholding in its general insurance joint venture.
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