ICICI Lombard sheds 1% as Axa SA plans to pare stake

NEW DELHI: Shares of ICICI Lombard General Insurance declined nearly 1% in early Mumbai trading on Tuesday after French insurance firm Axa SA said that it plans to sell around 175 crore equity shares through a block deal.

At 09:25 hours (IST), ICICI Lombard General Insurance traded at Rs 1565.90 on the National Stock Exchange, down 0.8% from the previous close.

The block deal, scheduled for later in Tuesday, represents 3.57 per cent of Axa SA’s stake in ICICI Lombard.

The indicative price of the deal is Rs 1,497 to Rs 1,576 per share and the deal size is estimated at close to Rs 2,620 crore.

In the April-June quarter, the domestic insurer’s net sales on a standalone basis were at Rs 200.15 crore, registering a decline in 64.16 per cent on a yearly basis. The net profit also saw a hefty decline of 61.91 per cent at Rs 151.63 crore.

There is no lock-up period for Axa SA’s stake sale and the type of offering has been declared as a 100 per cent secondary share placement.

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