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September 9th 2017: In four months, ICICI Lombard General Insurance valuations jump 50%

In four months, ICICI Lombard General Insurance valuations jump 50%:

Private general insurance company ICICI Lombard, which was valued at around Rs 20,000 crore in May 2017, has seen a 50 percent jump in its valuations to Rs 30,000 crore. ICICI Lombard is bringing out its initial public offering (IPO) which opens on September 15, 2017 and will close on September 19, 2017.

The price band has been fixed from Rs 651 to Rs 661 per equity share and Rs 5615 crore will be raised from the offer for sale. This has valued the insurer between Rs 29,500 crore and Rs 30,000 crore.

The funds raised from the IPO will go to the bank. The minimum capital requirement or solvency of ICICI Lombard is above the prescribed limit of 1.5 and stands at 2.13.

In May, ICICI Lombard General Insurance had said that its foreign partner, Canada-based Fairfax, offloaded part stake of 12.18 percent to a clutch of investors, including Warburg Pincus for around Rs 2480 crore.

 For more details, kindly click on the following link:

 

http://www.moneycontrol.com/news/business/economy/in-four-months-icici-lombard-general-insurance-valuations-jump-50-2383035.html

September 7th 2017: ICICI Lombard General Insurance IPO to open on September 15, ICICI Bank shares gain

ICICI Lombard General Insurance IPO to open on September 15, ICICI Bank shares gain:

ICICI Bank shares gained more than 1 percent intraday Thursday after CNBC-TV18 report said the IPO of its general insurance company will open for subscription in the coming week.

ICICI Lombard General Insurance Company will launch its initial public offer of up to 8,62,47,187 equity shares on September 15.

The issue consists of offer for sale of up to 3,17,61,478 equity shares by promoter ICICI Bank, up to 5,44,85,709 shares by investor Fal Corporation. The issue also include a reservation of up to 43,12,359 equity shares for purchase by ICICI Bank shareholders.

 The issue will close on September 19.

ICICI Lombard is the largest private-sector non-life insurer in India based on gross direct premium income in fiscal 2017.

Earlier this week, ICICI Lombard General Insurance Company received approval capital market regulator Sebi for the IPO, which would be the first by a general insurer in the country.

For more details, kindly click on the following link:

http://www.moneycontrol.com/news/business/stocks-business/icici-lombard-general-insurance-ipo-to-open-on-september-15-icici-bank-shares-gain-2381159.html

September 6th 2017: ICICI Lombard gets SEBI approval for Rs. 6,000 cr IPO

ICICI Lombard gets SEBI approval for Rs. 6,000 cr IPO:

ICICI Lombard General Insurance Company has got capital markets regulator Securities and Exchange Board of India (SEBI)’s go-ahead for its estimated Rs. 6,000 crore initial public offer, which could be the first by a general insurer in the country.

Two state-run general insurers — General Insurance Corp of India and New India Assurance Company — as also two life insurance firms (SBI Life and HDFC Standard Life) have also lined up IPO plans and are awaiting SEBI’s go-ahead for their respective draft papers.

Among these, SEBI is awaiting “clarification” from insurance regulator IRDAI with regard to IPOs by HDFC Standard Life, New India Assurance and General Insurance, as per the latest update available with SEBI on these IPOs. In case of SBI Life, the market regulator received the required details from IRDAI on August 28 and the case is currently “under process” at SEBI’s end.

SEBI issued its “observations” — a technical jargon for the regulator’s go-ahead for public issues — on the public offer by ICICI Lombard General Insurance on September 1. The company had filed its draft prospectus with SEBI on July 14 for the public issue which would comprise Offer For Sale of shares by existing shareholders, accounting for 19 per cent stake.

ICICI Lombard is a joint venture between ICICI Bank and Canada-based Fairfax Financial Holdings Ltd. The IPO involves dilution of up to 86,247,187 equity shares of face value of Rs. 10 each of ICICI Lombard General Insurance. According to market sources, the IPO could be worth about Rs. 6,000 crore.

SEBI had sought clarification from IRDAI regarding General Insurance Corp (GIC) on August 21 and about New India Assurance Co Ltd on August 16. Some ‘clarification’ was sought from IRDAI regarding HDFC Standard Life on August 23.

For more details, kindly click on the following link:

http://www.thehindubusinessline.com/money-and-banking/icici-lombard-gets-sebi-approval-for-rs-6000-cr-ipo/article9846105.ece

September 5th 2017: Rama Moorthy takes over as MD and CEO of Tamilnad Mercantile Bank

Rama Moorthy takes over as MD and CEO of Tamilnad Mercantile Bank:

Former United Bank of India’s (UBI) Executive Director K V has taken over as Managing Director and Chief Executive Officer of Ltd.

Prior to this, he was working as Executive Director of since 2015 and earlier he was with 

has over three decades of experience in various phases of banking across operations, new products and services, retail lending, corporate banking, marketing and business expansion.

The appointment of Moorthy is for a period of three years from the date of assuming the charge according to the approval received from the Reserve Bank of India, in line with the earlier recommendations of the bank’s board.

For more details, kindly click on the following link:

http://www.business-standard.com/article/finance/rama-moorthy-takes-over-as-md-ceo-of-tamilnad-mercantile-bank-117090400951_1.html

 

September 5th 2017: Catholic Syrian Bank aims to get back to consistent growth, says MD & CEO

Catholic Syrian Bank aims to get back to consistent growth, says MD & CEO:

The Kerala-based (CSB) has chalked out plans to get back on the path of consistent growth and sustainable success, powered by core income growth. The bank is focusing on capital augmentation after the deal didn’t go through.

 

In 2016-17, the bank was able to report an operating profit of Rs 151.71 crore, as against an operating loss of Rs 3.75 crore in 2015-16, and reported a net profit of Rs 1.55 crore, as against a net loss of Rs 149.72 crore in 2015-16.

 

Chairman said the bank’s profitability was under stress mainly due to muted growth in the overall business and an increase in provisioning for (NPA). However, according to him, the erosion in profitability has been arrested and contained.

For more details, kindly click on the following link:

http://www.business-standard.com/article/finance/catholic-bank-to-focus-on-capital-credit-casa-says-md-117090400417_1.html

August 30th 2017: Metropolitan Stock Exchange of India eyes block deals in revival bid

Metropolitan Stock Exchange of India eyes block deals in revival bid:

The Metropolitan Stock Exchange of India (MSEI) plans to woo brokerages to execute large stock trades on its venue, as a new management team tries to breathe life into a bourse that has floundered for a decade.

Backed by billionaires Rakesh Jhunjhunwala and Radhakishan Damani, MSEI aims to wade into the block deals segment, which is worth as much as Rs5 trillion ($78 billion), according to chief executive Udai Kumar. India’s regulator defines a block as a single trade having at least 500,000 shares or a minimum value of 50 million rupees. Money managers like dealing in large sizes because it ensures transactions are done before the market can hear about them and react by raising or lowering prices.

“We are telling institutional investors to come to our platform—there will be no slippages or price impact,” said Kumar, who was named chief executive officer last year to turn around the bourse. The MSEI is in talks with half a dozen large investment banks to bring in such deals, he said.

That’s easier said than done. Despite starting in 2008, MSEI has failed to seriously threaten its rivals. It had a 4.3% share of currency derivatives at the end of March, and barely exists in India’s $2 trillion equity market, which is dominated by the National Stock Exchange of India Ltd and BSE Ltd.

The company has struggled to make a mark since a payment default in 2013 at a related exchange forced the original founders to sell. A clutch of financial institutions now own more than 34% of MSEI, as do investors including Jhunjhunwala, Damani and Nemish Shah, according to bourse’s website.

For more details, click on the following link:

http://www.livemint.com/Money/YvUnP0KyiiRv4aPOUMCL4L/Metropolitan-Stock-Exchange-of-India-eyes-block-deals-in-rev.html

August 29th 2017: ICICI Lombard OK withinvestor backing rival co

ICICI Lombard OK withinvestor backing rival co:

ICICI Lombard is beefing up its digital platform to consolidate its position as the country’s largest private non-life insurer even as partner Fairfax Financial Holdings prepares to pick up 49% stake in a rival non-life startup Digit. However, the private insurer does not see any conflict in Fairfax being the biggest shareholder by retaining close to 10% stake in ICICI Lombard.

Speaking to TOI, ICICI Lombard MD & CEO Bhargav Dasgupta said that the settlement with Fairfax has been amicable. “They are extremely bullish on general insurance — their core business — and they are very bullish on India. Fairfax was very keen to hold 49% in their India business,” Dasgupta said.

However, this was not possible as ICICI Bank‘s stated objective was to list its insurance subsidiaries. “Since they had to obviously dilute because of the IPO, it made sense for them to invest in a business where they could hold 49%,” he added.

 ICICI Lombard has been the first general insurer to file for an IPO through which Fairfax and ICICI Bank are diluting their shareholding by 12% and 7% respectively. “The company has 8.5% share of the Rs 1.28-lakh-crore non-life industry and has been growing at a compounded annual rate of 26.7% from FY15 to FY17” said Dasgupta. The non-life venture is valued by analysts at around Rs 30,000 crore. Going by current valuations the IPO is likely to raise Rs 5,700 crore.
For more details, click on the following link:
http://timesofindia.indiatimes.com/business/india-business/icici-lombard-ok-withinvestor-backing-rival-co/articleshow/60266918.cms

 

 

August 24th 2017: Bandhan Bank initiates IPO process

Bandhan Bank initiates IPO process:

Bandhan Bank has initiated the process of an initial public offering (IPO). The timing of the IPO will depend on market conditions, Chandra Shekhar Ghosh, Managing Director and CEO, Bandhan Bank, said.

The bank is in the process of selecting investment bankers for its proposed IPO. “The process of selecting investment banks has started. It is a long process,” he said.

Bandhan is the first microfinance institution to receive universal banking licence in 2015. The Reserve Bank of India’s guidelines mandates the bank to get itself listed within three years from commencement of banking operations.

“As per RBI norms we have to get listed within three years; we are in the process,” Ghosh told newspersons on the sidelines of its second anniversary celebration here on Wednesday. The bank is not in a hurry to go for an IPO immediately as it is comfortable on the capital front.

For more details, kindly click on the following link:

http://www.thehindubusinessline.com/money-and-banking/bandhan-bank-initiates-ipo-process/article9829217.ece

August 25th 2017: Five mega Insurance IPOs to raise up to Rs 40,000 crore by this year-end

Five mega Insurance IPOs to raise up to Rs 40,000 crore by this year-end:

Looking for protection from financial losses? While you may contemplating as to which insurance policy would be suitable to your needs given the plethora of policies, these companies are also coming out with their IPOs. There are five mega Insurance IPO’s lined up before the end of 2017 which you may want to consider. These companies are set to collectively raise up to Rs 40,000 crore before the end of 2017. These companies are HDFC Standard Life Insurance,  New India Assurance, GIC of India, SBI Life Insurance Company and ICICI Lombard General Insurance Company. Take a look.

For more details, click on the following link:

Five mega Insurance IPOs to raise up to Rs 40,000 crore by this year-end

August 25th 2017: Hero FinCorp in talks to raise Rs1,000 crore at $1 billion valuation

Hero FinCorp in talks to raise Rs1,000 crore at $1 billion valuation:

Hero FinCorp Ltd, the financial services arm of India’s largest two-wheeler maker Hero MotoCorp Ltd, is looking to raise up to Rs1,000 crore at a valuation of $1 billion at its next funding round, two people familiar with the matter said.

Credit Suisse, which was mandated to manage the fund-raising, has approached several large domestic and global private equity funds for a potential investment, the people cited above said on condition of anonymity.

The size of the stake sale has not been finalized and will depend on what the final valuation is in the forthcoming round, they said.

“The company expects to be valued around $1 billion,” said one of the two people cited above. In the last funding round, Hero FinCorp was valued at close to Rs4,000 crore, this person said. “Since then, the book size has grown significantly.”

For more details, kindly click on the following link:

http://www.livemint.com/Companies/lPAaUosafXK7m7sYES8ixO/Hero-FinCorp-in-talks-to-raise-Rs1000-crore-at-1-billion-v.html

August 18th 2017: PNB Housing Finance’s Journey to becoming the ‘fastest growing’ Home Financing Company in India

PNB Housing Finance’s Journey to becoming the ‘fastest growing’ Home Financing Company in India:

PNB Housing Finance in a span of last 5 years has gone through deep transformation and has done what many in this space would consider a miracle. Innovation and a serious look into talent management, PNB Housing has managed to create India’s fastest growing housing finance company. At the heart of its success is its ‘customer friendly’ tag.

For a company that was set up in 1988, as a public sector holding, the transformation really started with the divestment of 26% equity to New Silk Route. Sanjaya Gupta, MD & CEO, PNB Housing Finance caught up with Manisha Natarajan of CNBC-TV18 and said, “The real transformation started in July 2010, with the implementation of the PPP beginning July 2011 and it became very apparent for the people of the country in Oct 2012.” The changes became apparent in all aspects of the business thereafter. Transformation of employees, technological changes, revamping physical infrastructure, adopting a new target operating model and new brand positioning to change public perceptions, improved customer reach and augmenting the delivery model were all part of PNB Housing ’s massive revamping campaign.

For more details, kindly click on the following link:

http://www.moneycontrol.com/news/trends/features-2/pnb-housing-finances-journey-to-becoming-the-fastest-growing-home-financing-company-in-india-2363263.html

August 19th 2017: ICICI Lombard expects SEBI nod for its IPO in next 2-3 weeks

ICICI Lombard expects SEBI nod for its IPO in next 2-3 weeks:

ICICI Lombard’s plan to list on the stock market looks well in place. The due diligence for the 13 percent stake sale to private equity players will be completed by end of the month. The company is expecting a SEBI nod for its IPO in the next 2-3 weeks, reports CNBC-TV18’s Yash Jain.

For more details, kindly click on the following link:

http://www.moneycontrol.com/news/business/ipo-business/icici-lombard-expects-sebi-nod-for-its-ipo-in-next-2-3-weeks-2363065.html

August 19th 2017: CSB shares trading at 25% premium in grey market

CSB shares trading at 25% premium in grey market:

Shares of Catholic Syrian Bank are trading at around 25% premium in the grey market, making it difficult for potential bidders to push the overall valuation down. So, whoever — CentrumBSE 15.18 %, InCred — wins the bid, may have to shell out a lot more premium to get on board.

The stock is being traded at Rs 180 apiece, setting a benchmark for any transaction for the prospective buyer to take a stake. The book value is Rs 120 a share and is trading at 1.5 times of that, valuing the bank roughly at over Rs 1500 crore.

Despite Canadian billionaire Prem Watsa abandoning the idea to buy a majority stake in Catholic Syrian Bank, investors are quite upbeat about it. ET had recently reported that Deutsche Bank’s former chief Anshu Jain-backed Incred Finance is competing with US private equity giant Warburg Pincus and Aion Capital for a controlling stake in Catholic Syrian Bank

For more details, kindly click on the following link:

http://economictimes.indiatimes.com/markets/stocks/news/csb-shares-trading-at-25-premium-in-grey-market/articleshow/60112563.cms

August 17th 2017: InCred, Aion, Warburg vie for CSB stake

InCred, Aion, Warburg vie for CSB stake:

InCred Finance, backed by former Deutsche Bank co-CEO Anshu Jain, is competing with US private equity giant Warburg Pincus and Aion Capital for a controlling stake in Catholic Syrian Bank after negotiations between the Kerala-based lender and Canadian billionaire Prem Watsa-controlled Fairfax hit a roadblock.

The new set of investors is expected to make formal offers by September, several people with knowledge of the matter told ET.

“Yes, we are talking to a new set of  investors.

Hopefully, within a few weeks, we should be able to start exclusive dialogue with one of them,” said a person with direct knowledge of the process.

The 97-year-old bank is held by Bangkok-based Indian businessman Surachan Chansri Chawla along with a few high net worth individuals and some private equity funds.

Earlier this year, Fairfax made a formal offer valuing the bank at around Rs 1,300 crore.

For more details, kindly click on the following link:

http://economictimes.indiatimes.com/industry/banking/finance/banking/incred-aion-warburg-vie-for-csb-stake/articleshow/59962080.cms

July 31st 2017: Hero FinCorp looks to raise Rs 800 crore from ChrysCap

Hero FinCorp looks to raise Rs 800 crore from ChrysCap:

Hero FinCorp, the vehiclefinance arm of two-wheeler maker Hero MotoCorpBSE 0.03 %, is looking to raise about $120 million, or Rs 800 crore, from India-focused private equity (PE) firm ChrysCapital, two people aware of the development said.

In September 2016, Hero FinCorp had raised about Rs 1,000 crore in the first round from investors, including ChrysCapital. The PE firm and financial services firm Credit Suisse had invested around Rs 700 crore in the company, while about Rs 300 crore was invested by its parent, Hero Group. “Hero Fin-Corp has sent out feelers to ChrysCapital for the second round of investment. The deal is in an initial stage,” said a person close to the development.

The second round of fund-raising is towards the company’s plans for expansion and buying stake in other NBFCs, another person in the know said. “It makes perfect sense for Hero FinCorp to sell some stake at this point in time. The only problem is valuations; the sellers have quite high expectations,” said another person in the know.

For more details, kindly click on the following link:

http://economictimes.indiatimes.com/industry/banking/finance/hero-fincorp-looks-to-raise-rs-800-crore-from-chryscap/articleshow/59815611.cms

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