World

Fairfax offloads 4.9% stake in ICICI Lombard for Rs 2,627 crore

Canadian billionaire Prem Watsa’s Fairfax on Wednesday sold its entire remaining stake in ICICI Lombard General Insurance Co. Ltd shares worth Rs2,626.5 crore, ending its 18 year run as an investor in the company.

According to data from stock exchanges, Fairfax owned entity FAL Corp, sold 2.23 crore shares for Rs1,177.64 apiece on Wednesday. Names of buyers were not disclosed on the stock exchanges.

On wednesday, shares of ICICI Lombard closed at Rs1,206.75 apiece, down 4.77% on the BSE.

ICICI Lombard started as a JV between private sector lender ICICI Bank and Fairfax in 2001.

In September, Fairfax had sold another 4.9% stake in the general insurer.

The stake sales come after the insurance regulator Insurance Regulatory and Development Authority (Irdai) on 3 September, allowed an exception to Fairfax on the lock-in period of shares held by it in ICICI Lombard.

In September 2017, ICICI Lombard went public in an IPO that valued the company at Rs30,000 crore and saw the company’s two sponsors, ICICI Bank Ltd and Fairfax, sell shares worth Rs5,700 crore. Fairfax had sold a 12% stake through the IPO.

In June 2017, Fairfax partnered with Kamesh Goyal, a former Allianz executive who led the German insurance company’s India business, to fund his digital general insurance startup.

Fairfax’s other financial services bets in India include CSB Bank Ltd and India Infoline Group.

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