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General insurers sell ITC stock to hike book value before listing

LIC, however, increases stake in company to 16.29%

Namrata Acharya & Ishita Ayan Dutt  |  Kolkata 

A man talks on his mobile phone as he walks past an ITC office building in Kolkata. Photo: Reuters
A man talks on his mobile phone as he walks past an ITC office building in Kolkata. Photo: Reuters

Ahead of listing, public sector general companies have reduced their stakes in one of their most valued blue-chip company, Ltd.

New India Assurance’s shareholding in fell from 1.75 per cent in the December quarter to 1.70 per cent in the March quarter of 2016-17, according to the Oriental Insurance’s stake fell from 1.46 per cent to 1.40 per cent. The stake of Corporation of India (GIC) in came down from 1.77 per cent to 1.76 per cent between the third and the fourth quarters of the last financial year.

Kolkata-based which, according to the BSE, held 1.21 per cent in at the end of third quarter of the last financial year, too, sold a part of its stake in the past few months, while retaining a part of its shareholding, said Sanath Kumar, chairman and managing director.

Recently, a public interest litigation (PIL) was filed in the Bombay High Court against the government and six state-owned insurers, including Corporation (LIC), seeking divestment of their holdings in tobacco companies and also seeking to prevent these from making such investments.

The current round of stake sale by the general firms comes as this was meant for increasing the book value of public sector general companies. “This is purely a market operation, aimed at increasing our book value. We still retain a substantial number of shares. We will do whatever the government directs us to do regarding investments in tobacco companies,” Kumar told Business Standard.

However, while public sector general companies sold shares in ITC, increased its stake from 14.32 per cent to 16.29 between the third and the fourth quarters of FY17, according to

Minister Arun Jaitley, in 2016-17, had proposed listing all five public sector — GIC, New India Assurance, United India Insurance, and

The public sector general companies are working on improving their financials ahead of listing, and this is the reason for the stake sale.

The investments of public sector general companies stood at Rs 1,22,650 crore in the March quarter, almost double that of private sector companies, according to data from the Regulatory and Development Authority of India. However, the companies are not allowed to account these for calculating solvency ratios.

According to data available in the public domain, while and have solvency ratio below the regulatory requirement of 1.50 per cent, United India and reported losses recently. and National Insurance, too, saw a decline in profitability.

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General insurers sell ITC stock to hike book value before listing

LIC, however, increases stake in company to 16.29%

LIC, however, increases stake in company to 16.29%
Ahead of listing, public sector general companies have reduced their stakes in one of their most valued blue-chip company, Ltd.

New India Assurance’s shareholding in fell from 1.75 per cent in the December quarter to 1.70 per cent in the March quarter of 2016-17, according to the Oriental Insurance’s stake fell from 1.46 per cent to 1.40 per cent. The stake of Corporation of India (GIC) in came down from 1.77 per cent to 1.76 per cent between the third and the fourth quarters of the last financial year.

Kolkata-based which, according to the BSE, held 1.21 per cent in at the end of third quarter of the last financial year, too, sold a part of its stake in the past few months, while retaining a part of its shareholding, said Sanath Kumar, chairman and managing director.

Recently, a public interest litigation (PIL) was filed in the Bombay High Court against the government and six state-owned insurers, including Corporation (LIC), seeking divestment of their holdings in tobacco companies and also seeking to prevent these from making such investments.

The current round of stake sale by the general firms comes as this was meant for increasing the book value of public sector general companies. “This is purely a market operation, aimed at increasing our book value. We still retain a substantial number of shares. We will do whatever the government directs us to do regarding investments in tobacco companies,” Kumar told Business Standard.

However, while public sector general companies sold shares in ITC, increased its stake from 14.32 per cent to 16.29 between the third and the fourth quarters of FY17, according to

Minister Arun Jaitley, in 2016-17, had proposed listing all five public sector — GIC, New India Assurance, United India Insurance, and

The public sector general companies are working on improving their financials ahead of listing, and this is the reason for the stake sale.

The investments of public sector general companies stood at Rs 1,22,650 crore in the March quarter, almost double that of private sector companies, according to data from the Regulatory and Development Authority of India. However, the companies are not allowed to account these for calculating solvency ratios.

According to data available in the public domain, while and have solvency ratio below the regulatory requirement of 1.50 per cent, United India and reported losses recently. and National Insurance, too, saw a decline in profitability.

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Business Standard
177 22

General insurers sell ITC stock to hike book value before listing

LIC, however, increases stake in company to 16.29%

Ahead of listing, public sector general companies have reduced their stakes in one of their most valued blue-chip company, Ltd.

New India Assurance’s shareholding in fell from 1.75 per cent in the December quarter to 1.70 per cent in the March quarter of 2016-17, according to the Oriental Insurance’s stake fell from 1.46 per cent to 1.40 per cent. The stake of Corporation of India (GIC) in came down from 1.77 per cent to 1.76 per cent between the third and the fourth quarters of the last financial year.

Kolkata-based which, according to the BSE, held 1.21 per cent in at the end of third quarter of the last financial year, too, sold a part of its stake in the past few months, while retaining a part of its shareholding, said Sanath Kumar, chairman and managing director.

Recently, a public interest litigation (PIL) was filed in the Bombay High Court against the government and six state-owned insurers, including Corporation (LIC), seeking divestment of their holdings in tobacco companies and also seeking to prevent these from making such investments.

The current round of stake sale by the general firms comes as this was meant for increasing the book value of public sector general companies. “This is purely a market operation, aimed at increasing our book value. We still retain a substantial number of shares. We will do whatever the government directs us to do regarding investments in tobacco companies,” Kumar told Business Standard.

However, while public sector general companies sold shares in ITC, increased its stake from 14.32 per cent to 16.29 between the third and the fourth quarters of FY17, according to

Minister Arun Jaitley, in 2016-17, had proposed listing all five public sector — GIC, New India Assurance, United India Insurance, and

The public sector general companies are working on improving their financials ahead of listing, and this is the reason for the stake sale.

The investments of public sector general companies stood at Rs 1,22,650 crore in the March quarter, almost double that of private sector companies, according to data from the Regulatory and Development Authority of India. However, the companies are not allowed to account these for calculating solvency ratios.

According to data available in the public domain, while and have solvency ratio below the regulatory requirement of 1.50 per cent, United India and reported losses recently. and National Insurance, too, saw a decline in profitability.

image
Business Standard
177 22