ICICI Lombard General Insurance Company made a dull debut on indices today. The shares of India's largest private sector non-life insurer, stumbled beyond 3.38% to Rs 638.65 against its issue price of Rs 661.
However, the stocks recovered after initial trading and reached above its issue price.
Experts believe, because of the slowdown in markets over global cues, the stock failed to perform as expected.
ICICI Lombard's Rs 5,700-crore IPO, the second biggest this year, was oversubscribed 3 times during September 15-19. Institutional investors' segment of the IPO was subscribed over 8 times.
The initial public offer (IPO), through which the insurer is looking to raise about Rs 5,700 crore, received bids for 6,01,87,028 shares against the total issue size of 6,16,66,740 shares, data available with the NSE showed.
The insurer had fixed the price band at Rs 651-661 per share for the Rs 5,700-crore IPO. ICICI Lombard General Insurance is a joint venture between ICICI Bank and Canadian NRI Prem Watsa-promoted Fairfax Financial Holdings.
For the ICICI Bank group, this was the second public offer this fiscal. Its life insurance arm ICICI Prudential had raised Rs 6,000 crore through an IPO earlier.
