Responding to queries on weak post-listing performance of insurance companies, Anuradha Thakur, joint secretary, Department of Investment & Public Asset Management (Dipam) said, “We don’t believe the issues were overpriced. These companies have technical resources and high intrinsic value. This is not getting captured in regular valuation pattern.” Dipam will take into consideration what happened with New India and GIC Re when it comes to pricing future initial public offerings (IPOs) from the insurance sector, she said on the sidelines of a conference to launch the Bharat-22 ETF.
The Centre is looking to launch IPOs of at least three more insurance companies, which include United India, Oriental Insurance Company and National Insurance Company.She said the government is evaluating the timing for these IPOs. Without divulging the name, Thakur said the Centre will launch one more IPO in November and some strategic sales planned, going ahead. The government is looking to complete the ONGC-HPCL deal in this fiscal year, she said.