Shares of ICICI Lombard General Insurance Company , the country’s largest private non-life insurer, ended on a strong note after a weak debut on Wednesday . The stock ended at `680.10, about 2.9% above the initial public offer (IPO) price of `661 in a weak market. ICICI Lombard shares, which opened at `651 and fell to a low of `638.65 on the NSE, recovered as much as 8.7% to the day’s high of `694.
The `5,700-crore IPO of ICICI Lombard was subscribed 2.97 times.Analysts said the response was relatively moderate due to high valuations.
“We strongly believe that there is a very strong growth runway for that sector in general and within that ICICI Lombard stands in perfect space as being a market leader, not only across product categories but in terms of disclosure practices, reserving practices as well as claim settlement“ Debasish Purohit, head-financial institutions Group, BofA ML.
The total issue size is 8.62 crore shares -entirely an offer for sale by the insurer’s two main shareholders ICICI Bank and Canada’s Fairfax Financial Holdings. Bank of America Merrill Lynch, ICICI Securities and IIFL Holdings were the lead bankers. CLSA India, Edelweiss Financial Services and JM Financial also managed the issue.