American private equity investor Warburg Pincus on Friday sold a substantial chunk of its shareholding in listed insurance company ICICI Lombard General Insurance Co Ltd, according to data from stock exchanges.
On Friday, Red Bloom Investment Ltd, an entity owned by funds of Warburg Pincus sold a total of 13.27 million shares at a price of Rs 800 per share.
On Friday, shares of the general insurance company closed at Rs 832.15, up 3.88%, on the BSE.
The sale fetched the American private equity firm Rs 1,062 crore.
As of 30 September, Warburg Pincus held a 9% stake in ICICI Lombard General Insurance. The PE firm sold a third of its stake on Friday.
The stake was bought by a bunch of mutual funds, including SBI Mutual Fund, Tata Mutual Fund, Sundaram Mutual fund, Kotak Equity Fund and ICICI Prudential Mutual Fund, among others, according to stock exchange data.
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 Rs 2,372.5 crore then). The share sale valued the insurance company at Rs 20,500 crore.
In September 2017, ICICI Lombard went public in an IPO that valued the company at Rs 30,000 crore and saw the company’s two sponsors, ICICI Bank Ltd and Fairfax, sell shares worth Rs 5,700 crore. The two had set up the insurance firm in 2001.
As on Friday, the company’s market capitalisation was worth Rs 37,784.9 crore.
Source: Mint