The price band is fixed at Rs 870-900 per equity share. Bids can be made for a minimum of 16 equity shares and in multiples of 16 thereafter. At the upper price band, the company is valued at Rs 51,000 crore, or $7 billion. Among the listed non-life insurance companies, ICICI Lombard General Insurance, the largest private insurer, is valued at Rs 73,050 crore, while the largest non-life company New India Insurance is valued at Rs 25,453 crore.
“Jhunjhunwala, who has 17.5% stake, will not be selling his shares under the offer for sale,” MD S Prakash said. Overall, the promoters will dilute a 4.8% stake. After the dilution, the promoter stake will be at 55%.
The IPO consists of a fresh issue of shares of up to Rs 2,000 crore and an offer for sale of up to 5.8 crore shares by promoters and existing shareholders. The offer includes a reservation up to Rs 100 crore for subscriptions by eligible employees.