Home >market >stock-market-news >ICICI Lombard shares end 3.1% higher on market debut

Mumbai: Shares of ICICI Lombard General Insurance Co. Ltd recovered after a weak debut and closed 3.1% higher on Wednesday after the general insurer’s Rs5,700-crore initial public offer (IPO) was subscribed nearly three times earlier this month.

The shares closed 3.11% higher at Rs680 in a weak Mumbai market, where Sensex shed 1.39% to 31,159.81 points, its lowest close in three months. They had opened 1.66% lower on the BSE at Rs650 apiece, compared to the issue price of Rs661, which was the upper end of the price band between Rs651-Rs661 per share. Earlier in the day, the stock touched a high of Rs694 and a low of Rs638.15, respectively.

ICICI Lombard is the largest private insurance firm with 8.4% market share on gross direct premium income (GDPI) basis among all non-life insurers in India. It holds 18% share among private sector non-life insurers in the country, and manages Rs16,450 crore of investment assets. The IPO valuation is a significant mark-up from the valuation of Rs20,300 crore in May, when Fairfax sold a 12.18% stake to a bunch of buyers, including private equity firm Warburg Pincus. The sale fetched Fairfax around $383 million (around Rs2,372.5 crore then).

Though analysts were upbeat on the prospects of ICICI Lombard, the valuation was a bother, and they recommended subscribing to the IPO, from a long-term perspective.

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