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Issue Open Date
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15-Sep-17
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Issue Closing Date
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19-Sep-17
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Application Money
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100
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Allotment Money
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Price Band
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651
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661
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Minimium Application No.
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22
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Issue Size (Shares)
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86247187
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Market Lot
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1
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Objective
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OBJECTS OF THE OFFERThe objects of the Offer are to achieve the benefits of listing the Equity Shares of our Company on the Stock Exchanges and tocarry out the sale of up to 86,247,187 Equity Shares by the Selling Shareholders. The listing of the Equity Shares will enhance the“ICICI Lombard” brand name and provide liquidity to the existing shareholders. The listing will also provide a public market forthe Equity Shares in India. Our Company will not receive any proceeds from the Offer.
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Category
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No. of Shares
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No. of Shares
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Subscription Ratio
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Offered / Reserved |
Bid For |
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Non-Institutional Investors
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12290225
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10149480
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0.825817265347054
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Qualified Institutional Buyers
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16386966
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133939432
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8.17353450297023
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Retail Individual Investors
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28677190
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35193972
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1.2272461841624
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Business Description
OverviewWe were the largest private-sector non-life insurer in India based on gross direct premium income in fiscal 2017, a position wehave maintained since fiscal 2004 after being one of the first few private-sector companies to commence operations in the sectorin fiscal 2002, according to the CRISIL Report. We offer our customers a comprehensive and well-diversified range of products,including motor, health, crop/weather, fire, personal accident, marine, engineering and liability insurance, through multipledistribution channels. We were founded as a joint venture between ICICI Bank Limited, India’s largest private -sector bank interms of consolidated total assets with an asset base of ? 9.9 trillion at March 31, 2017, and Fairfax Financial Holdings Limited, aCanadian based holding company which, through its subsidiaries, is engaged in property and casualty insurance and reinsuranceand investment management with US$43.38 billion of total assets at December 31, 2016.The Indian economy is one of the fastest growing large economies in the world, with its gross domestic product growing at acumulative annual growth rate of 7.25% (in real terms) from fiscal 2013 to fiscal 2017, while the Indian non-life insuranceindustry, based on gross direct premium income, grew at a cumulative annual growth rate of 16.6% during the same period. TheIndian non-life insurance industry was the 15th largest non-life insurance market in the world and the fourth largest in Asia interms of gross direct premium income in the year ended December 31, 2016, according to the CRISIL Report.We believe that the non-life insurance sector in India holds significant growth potential because of its under-penetration and lowinsurance density compared with other economies. India continues to be under-penetrated with a non-life insurance penetration of0.8% of the gross domestic product, compared with a global average of 2.8% of the gross domestic product in the year endedDecember 31, 2016. Further, the non-life insurance density in India remained low at US$13.2 in the year ended December 31,2016 compared with a global average of US$285.3, according to the CRISIL Report. We expect this strong macroeconomicbackdrop coupled with India’s large working population, rising affluence, rapid urbanisation and rising awareness of risk, tocontinue to propel the growth of the non-life insurance industry in India.In fiscal 2017, we issued approximately 17.7 million policies and our gross direct premium income was ? 107.25 billion,translating into a market share, on a gross direct premium income basis, of 8.4% among all non-life insurers in India and 18.0%among private-sector non-life insurers in India, according to the CRISIL Report. For the three months ended June 30, 2017, weissued approximately 5.2 million policies and our gross direct premium income was ? 33.21 billion, translating into a marketshare, on a gross direct premium income basis, among all non-life insurers in India of 10.0% and among private-sector non-lifeinsurers in India of 20.2%, according to provisional and unaudited figures for non-life insurers released by IRDAI. Our keydistribution channels are direct sales, individual agents, bank partners, other corporate agents, brokers, and online, through whichwe service our individual, corporate and government customers. Our distribution network enables us to reach customers in 618 outof 716 districts across India.As of March 31, 2017, we had the largest total investment assets among the private-sector non-life insurers in India, according tothe CRISIL Report. As of June 30, 2017, we had ? 164.46 billion in total investment assets with an investment leverage, net ofborrowings of 4.07x as at June 30, 2017. Our investment policy is designed with the objective of capital preservation andachieving superior total returns within identified risk parameters. Our annualised total portfolio return (including unrealised gains)for fiscal 2017 was 13.0%. Our total portfolio return (including unrealised gains) for the three months ended June 30, 2017 was3.6% and 14.4% on an annualised basis. Listed equities made up 14.8% of our total investment assets, by carrying value, as ofJune 30, 2017. Since fiscal 2004, our listed equity portfolio has returned an annualised total return of 30.8%, as compared to anannualised return of 17.5% on the benchmark S&P NIFTY index. During the same time period, our equity portfolio outperformedthe S&P NIFTY index in all but one fiscal year. For the three months ended June 30, 2017, our listed equity portfolio has returneda total return of 6.9%, as compared to a return of 3.8% on the benchmark S&P NIFTY index.We take a holistic approach to risk management, which includes a data-driven risk selection framework, conservative reservingand quality reinsurance. We also work with our customers to proactively analyse and mitigate risks, which benefits both ourbusiness and our customers by reducing losses and the amount of claims.We believe that we are at the forefront of leveraging technology in the Indian non-life insurance industry, through which weprovide a seamless service experience to our customers and distribution partners across all stages of an insurance policy, andachieve efficiencies in internal operations. In fiscal 2017, 87.5% of our new policies were initiated electronically, either by ourdistributors or our customers. While our number of policies grew at a cumulative annual growth rate of 13.1% between fiscal 2015and fiscal 2017, our employee productivity, measured in terms of gross direct premium income per employee, increased from ?11.4 million in fiscal 2015 to ? 16.6 million in fiscal 2017, representing a cumulative annual growth rate of 20.7%.We have an established track record of delivering annual returns to shareholders and our return on equity has exceeded 15.6% foreach fiscal year since fiscal 2015. Our profit after tax and our return on equity were ? 6.42 billion and 17.2%, respectively, infiscal 2017 and ? 2.14 billion and 5.5 % (21.9% on an annualised basis), respectively, for the three months ended June 30, 2017.We have a strong capital position with a solvency ratio of 2.13x as of June 30, 2017 compared to the IRDAI-prescribed controllevel of 1.50x. We have paid cumulative dividends (exclusive of dividend distribution tax) of ? 4.14 billion since fiscal 2015.
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Promoter's Holding
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Total Share Capital
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Offered to Public
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Promoter's Holding (Pre-Issue)
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Promoter's Holding (Post-Issue)
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Address |
I C I C I Lombard House 414 Veer Savarkar Marg Prabhadevi
Mumbai,
Maharashtra,
400025
Phone : 022 61961323/1800 2666/8655222666
Email : investors@icicilombard.com/customersupport@icicilombard.com
Website : www.icicilombard.com
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Registrar |
K FIN Technologies Ltd.-(Karvy Fintech Pvt Ltd.)
105-108 Arunachal Building 19 Barakhamba Road New Delhi
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Listed at |
BSE, NSE
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Lead Manager |
CLSA India Ltd DSP Merrill Lynch Ltd Edelweiss Financial Services Ltd ICICI Securities Ltd IIFL Holdings Ltd. JM Financial Institutional Securities Ltd.
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Promoters |
ICICI Bank Ltd.
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