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New India Assurance's Rs 9,600-cr IPO price band set at Rs 770-800

This will be the fourth-largest IPO ever in the history of Indian markets

Pavan Burugula  |  Mumbai 

G Srinivasan, CMD, The New India Assurance Company Limited during the IPO Press Conference in Mumbai. (Photo: Kamlesh Pednekar)
G Srinivasan, CMD, The New India Assurance Company Limited during the IPO Press Conference in Mumbai. (Photo: Kamlesh Pednekar)

New India Assurance, country's largest company, will launch its Rs 9,600-crore initial public offering (IPO) on November 1. The for the issue has been fixed at Rs 770 to Rs 800.

This will be the fourth-largest ever in the history of Indian after Coal India, Reliance Power and Corporation (GIC Re).

The issue comprises of a fresh issue of Rs 1,920 crore and an offer for sale (OFS) of Rs 7,680 crore by the government of India. Retail investors are being offered a discount of Rs 30 per share (3.7 per cent on the upper price band).

Market participants say the issue will be a good bet for the investors as New India is the industry leader in the non-life segment in terms of market share, and also distribution network. The company commands a market share of 15 per cent in the overall space. New India has worth Rs 69,000 and also has a healthy solvency ratio of 2.27 per cent. The of the insurer have grown more than 15 per cent in the last five years.

Kotak Mahindra, Axis Capital, IDFC Bank, and are the book-running managers for the issue.

New India has close to 2,500 offices across the country and its distribution network comprises of 68,389 agents, data from the offer document said. While the direct channel of agents contributes more than 40 per cent of the business, New India gets close to a fourth of its business from The company also has the partnership with several states and central government organisations to provide customised insurance products.

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First Published: Wed, October 25 2017. 22:48 IST
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