NEW DELHI: Canada-based Fairfax today said its wholly-owned subsidiary, FAL Corporation, has sold 12 percent shares of ICICI Lombard as part of the insurer's IPO for about USD 548 million.
The shares were sold as part of ICICI Lombard's initial public offering, which values ICICI Lombard at about USD 4.6 billion (Rs 30,000 crore). "Upon completion of the transaction, Fairfax's share ownership in ICICI Lombard will be approximately 9.9 percent," Fairfax Financial Holdings Limited (Fairfax)said in a statement.
Shares of ICICI Lombard General Insurance Company recovered from initial losses to end over 3 percent higher than the issue price of Rs 661 in the debut trade today. "This sale transaction along with the previously announced sale of 12.2 percent of the shares of ICICI Lombard that closed in July 2017 and the remaining 9.9 percent of the shares of ICICI Lombard that Fairfax continues to hold results in total proceeds of USD 1.4 billion and a net gain of approximately USD 950 million after tax...," the release said.
Fairfax is a holding company which, through its subsidiaries, is engaged in property and casualty insurance and reinsurance and investment management.