ICICI Lombard’s Rs 5,700 crore IPO off to a decent start, issue subscribed 27% on Day 1

Related

  • ICICI Lombard’s Rs 5,700 crore IPO kicks off; here’s what 10 brokerages have to say on issue

NSEBSEICICI Bank Ltd.Loading data…

    ADD TO PORTFOLIO

    ADD TO WATCHLIST

    SHARE YOUR OULOOK

    EXPAND

    ChartsValuation & Peer ComparisonCommunity BuzzPEER COMPANIESCentrumLoading data…

      ADD TO PORTFOLIO

      ADD TO WATCHLIST

      SHARE YOUR OULOOK

      EXPAND

      ChartsValuation & Peer ComparisonCommunity BuzzPEER COMPANIESBNP ParibasLoading data…

        ADD TO PORTFOLIO

        ADD TO WATCHLIST

        SHARE YOUR OULOOK

        EXPAND

        ChartsValuation & Peer ComparisonCommunity BuzzPEER COMPANIES The Rs 5,700 crore initial public offer (IPO) of ICICI Lombard General Insurance Company, first by non-life private sector insurer, got subscribed 0.27 per cent on the first day of offer on Friday.

        The public offer received bids for 1,66,69,466 shares on Day 1 against 6,16,66,740 shares offered by the general insurer.

        Qualified Institutional Buyers (QIBs) quota was subscribed 62 per cent, while non-institutional investors put in bids at 4 per cent. Retail portion was subscribed 18 per cent at the end of Day 1.

        The general insurance company on Thursday raised Rs 1,625 crore from 64 anchor investors including Goldman Sachs India, Kuwait Investment Authority Fund, BlackRock, Societe Generale, Citigroup Global Markets Mauritius, Nomura Trust and Banking Co, BNP Paribas Equity Fund, HSBC Indian Equity Mother Fund and DSP BlackRock.

        The company has fixed price band of Rs 651 to Rs 661 per share for the ongoing public offer. The IPO will close on September 19.

        Most brokerages are bullish on the issue on a long-term basis. Reliance Securities has given ‘Subscribe’ rating to the issue. The brokerage noted that the company has delivered a strong growth in GDPI and has been successfully maintaining its leadership position amongst the private sector non-life insurers through various cycles of industry evolution since FY04.

        Centrum Borking said ICICI Lombard’s valuation is high considering the RoE of 17.2 per cent for FY ended March 2017, loss ratio of 80.6 per cent and the combined ratio of 104 per cent is lower than the average of private peers. However, the issue may be a hit because it is the first general insurer to list, it said. Moreover, the nonlife insurance segment is underpenetrated in India and the company’s financials are strong. Centrum has given ‘Subscribe’ rating to the issue.

        Добавить комментарий