(Photo: Pradeep Gaur/Mint)
(Photo: Pradeep Gaur/Mint)

Warburg Pincus exits ICICI Lombard; sells remaining 2.7% stake for $194.5 mn

  • Warburg had invested in ICICI Lombard in 2017, ahead of the insurer’s initial public offering
  • Red Bloom Investments, through which Warburg Pincus held the stake, sold its entire shareholding comprising of 1.22 crore shares for a price of 1,122.27 apiece

Mumbai: American private equity firm Warburg Pincus on Wednesday sold its remaining 2.7% stake in general insurer ICICI Lombard General Insurance Co. Ltd, for 1,378 crore (approximately $194.5 million).

According to data from stock exchanges, Red Bloom Investments, through which Warburg Pincus held the stake, sold its entire shareholding comprising of 1.22 crore shares for a price of 1,122.27 apiece. ICICI Lombard’s shares closed the day at 1,128.6 per share, down 4.15% on the BSE.

The stake sale marked a complete exit from the company for Warburg, which had invested in ICICI Lombard in 2017, ahead of the insurer’s initial public offering.

Warburg had acquired the 9% stake in ICICI Lombard from Fairfax Financial Corp. In May 2017, Fairfax sold a 12.18% stake in ICICI Lombard in a pre-IPO round to Warburg Pincus and other investors for around $383 million (around 2,372.5 crore then). The share sale valued the insurance company at 20,500 crore.

In September 2017, ICICI Lombard went public in an IPO that valued the company at 30,000 crore and saw the company’s two sponsors, ICICI Bank Ltd and Fairfax, sell shares worth 5,700 crore. The two had set up the insurance firm in 2001.

As on Wednesday, the company’s market capitalisation was worth 51,285.4 crore.

Warburg started selling its ICICI Lombard stake last year, when in November it sold a 3.14% stake for 1,062 crore. In June, the PE firm sold another 3.15% stake for around 1,577 crore.

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