ICICI Lombard files for first IPO by non-life insurer, to dilute 19% equity

ICICI Lombard General Insurance on Friday said it would offer about 19 per cent of its shares in an initial public offer (IPO), in which parent ICICI Bank and a unit of Fairfax Financial Holdings will offload their shares.

This is the first time that a non-life insurance company has filed a draft red herring prospectus — a document submitted by a company (issuer) as part of a public offering of securities — for an IPO. In the prospectus, the insurer said it would offer 86,247,187 equity shares, at the face value of Rs 10 per share, representing about 19 per cent of its equity share capital.

ICICI Bank, the majority shareholder of ICICI Lombard general insurance, will dilute 31,761, 478 of its equity share, while FAL Corp, a unit of Fairfax Financial Holdings, will dilute up to 54,485,709 equity shares.

Around 5 per cent of the total shares offered for dilution, that is 4,312,359 equity shares, will be reserved for individual and Hindu Undivided Family (HUF) shareholders of ICICI Bank, the bank said in a statement to exchanges.

This is the second insurance company of ICICI group to go public. ICICI Prudential Life insurance, a subsidiary company of ICICI bank, got listed last year. It sold 12.63 per cent stake via an IPO and was valued at Rs 48,000 crore. The market cap of ICICI Prudential Life Insurance stands at Rs 69,531 crore after Friday's market close.

Earlier, Fairfax Financial Holdings had sold 12.18 per cent in ICICI Lombard to private equity firms Warburg Pincus (nine per cent), Clermont Group (1.59 per cent) and IIFL Special Opportunities Fund (1.59 per cent). After the sale, the share ownership in ICICI Lombard of ICICI Bank and Fairfax will be approximately 63 per cent and 22 per cent, respectively.

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CS NIFTY FUTURES & BANK NIFTY FUTURES OVERVIEWS - 13 JULY 2017

CS NIFTY FUTURES (JULY) OVERVIEW

TREND BULLISH

RES2: 9875

RES 1:9830

SUP1:9775

SUP2:9725

CS BANK NIFTY FUTURES (JULY) OVERVIEW

TREND BULLISH

RES 2: 23925

RES 1:23825

SUP1: 23725

SUP2: 23625

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CS NIFTY FUTURES & BANK NIFTY FUTURES OVERVIEWS - 11 JULY 2017

CS NIFTY FUTURES (JULY) OVERVIEW

TREND BULLISH

RES2: 9825

RES 1:9800

SUP1:9750

SUP2:9715

CS BANK NIFTY FUTURES (JULY) OVERVIEW

TREND BULLISH

RES 2: 23825

RES 1:23785

SUP1: 23525
SUP2: 23475

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Market Outlook for the coming week 10 JULY 2017

Market Outlook for the coming week!

In the coming week, macroeconomic data, progress of monsoon rains, trend in global markets, investment by foreign portfolio investors (FPIs) and domestic institutional investors (DIIs), the movement of rupee against the dollar and crude oil price movement will dictate trend on the bourses.

The Q1 June 2017 earnings of India Inc will start ticking in. Among prominent companies, IndusInd Bank is slated to release June quarter results on Tuesday, 11 July 2017. TCS will announce Q1 June 2017 results on Thursday, 13 July 2017. Infosys is scheduled to announce Q1 earnings on Friday, 14 July 2017.

The India Meteorological Department (IMD) in its weekly weather report on Thursday, 6 July 2017, said that the all India cumulative seasonal rainfall from 1st June to 5th July 2017 stood at 217.3 mm as against normal rainfall of 206.7 mm, with a departure of +5%.

The June-September southwest monsoon is critical for the country's agriculture because a considerable part of the country's farmland is dependent on the rains for irrigation.

Among macro economic data, the government will announce industrial production data for the month of May 2017 after market hours on Wednesday, 12 July 2017.

The data on inflation based on consumer price index (CPI) or retail inflation for June 2017 will also be announced after market hours on that day.

The data on inflation based on wholesale price index (WPI) for June 2017 is slated to release on Friday, 14 July 2017.

On the global front, a closely watched US non-farm jobs report for June is due later on Friday, 7 July 2017. US industrial production data for the month of May is due on Friday, 14 July 2017.

China's foreign direct investment report for June is slated to release on Wednesday, 12 July 2017. On the same day, Eurozone industrial production data for the month of May is due.

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