Management and investment bankers of companies about to launch an initial public offering (IPO) are routinely quizzed by the press and analyst community about the valuation of their firms. The typical reply from bankers and company chiefs is that the firm has bright prospects or that other companies in the sector are valued at a much higher premium. At the IPO conference of New India Assurance,
Chairman and Managing director G Srinivasan was asked the same question. Tired, perhaps, of giving the standard reply, Srinivasan said: “New India Assurance
is a legendary company. It is an invaluable company.” New India Assurance’s Rs 10,000-crore IPO will hit the market in the first week of November.