Incorporated in 2000. ICICI Lombard General Insurance Co. Ltd. (ILGI) is a general insurance arm of ICICI Bank group. The Bank is in the process of unlocking value of its arms via public issues and listings. Last year the group came with first life insurance sector arm ICICI Prudential Life Insurance IPO that after initial hiccups surged and continues to do well. Now it is coming out with a maiden offer for its general insurance arm which is ranking first among private sector general insurance companies with better product mix and having better business on all fronts. To know what is an an IPO – Read this. Should you invest in ICICI Lombard IPO ? – Let’s find out.
ILGI is coming out with its maiden IPO via secondary route through book building pro- cess. It is offering 86247187 equity share of Rs. 10 each in a price band of Rs. 651 to Rs. 661 to mobilise Rs. 5614.69 to Rs. 5700.94 crores (on the basis of lower and upper price). Issue opens for subscription on 15.09.17 and will close on 19.09.17. Minimum application is to be made for 22 shares and in multiples thereon, thereafter. Post allotment, shares will be listed on BSE and NSE. This being a secondary offer, it’s paid up capital post issue will remain same at Rs. 453.95 crore. The issue constituted 19% of fully diluted post issue paid up equity capital of the company.
On performance front, ILGI has posted total revenues/net profits of Rs. 5028.41 cr. / Rs. 520.07 cr. (FY14), Rs. 5044.81 cr. / Rs. 585.32 cr. (FY15), Rs. 5804.25 cr. / Rs. 505.34 cr. (FY16) and Rs. 7180.49 cr. / Rs. 641.82 cr. (FY17). For first quarter ended on 30.06.17 of the current fiscal, it has earned net profits of Rs. 214.34 crore on total revenues of Rs. 1881.88 crore.
On BRLMs front, 6 merchant bankers associated with the offer have handled 42 public issues in the past three years out of which 11 issues closed below the issue price on the listing date.
Note : If we annualize latest working and attribute it on post issue equity then asking price is at a P/E of around 35 and at a P/BV of 7.6. Last three fiscal’s average RoNW is 18.42%. It has no listed peers to compare with. Average cost of acquisition by ICICI Bank and FAL, the selling stakeholders is Rs. 43.62 and Rs. 137.97 per share respectively.
ICICI Lombard IPO Issue Detail:
»» Issue Open: Sep 15, 2017 – Sep 19, 2017
»» Issue Type: Book Built Issue IPO
»» Issue Size: 86,247,187 Equity Shares of Rs 10 aggregating up to Rs 5,700.94 Cr
»» Face Value: Rs 10 Per Equity Share
»» Issue Price: Rs 651 – Rs 661 Per Equity Share
»» Market Lot: 22
»» Minimum Order Quantity: 22
»» Listing At: BSE, NSE
ICICI Lombard IPO Date
- Bid/Offer Opens On: September 15, 2017
- Bid/Offer Closes On: September 19, 2017
- Finalisation of Basis of Allotment: On or about September 22, 2017
- Initiation of refunds: On or about September 25, 2017
- Credit of Equity Shares to demat accounts: On or about September 26, 2017
- Commencement of trading of the Equity Shares on the Stock Exchanges: On or about September 27, 2017
ICICI Lombard IPO Grey Market Premium (GMP)
ICICI Lombard IPO Grey Market Premium is trading between Rs 65 – Rs 67.
Kindly Note: Grey Market Price (GMP) changes daily according to supply and demand.
Final Verdict on ICICI Lombard IPO
IPO’s offer price is fully priced, however considering bright future of this segment & being a first IPO from this sector it may create fancy post its listing. You should apply if you can hold it for long term.