You are here: Home » Markets » News
Business Standard

National Insurance Company looks to raise Rs 5,000 cr from IPO

NIC is hopeful that the IPO would hit the market by March next year, says CMD of NIC

Press Trust of India  |  Kolkata 

National Insurance Company expects up to Rs 5,000 cr from IPO

Non-life PSU insurer (NIC) is expecting to receive between Rs 4,000 crore and Rs 5,000 crore from the proceeds of its planned public offer, industry sources said.

Sources also said that the NIC, now wholly-owned by the government, would be seeking the amount to shore up its capital base in order to maintain solvency margins.

The quantum of stake dilution would be decided by the government, they said.

CMD of told PTI that the company had submitted its request to sector regulator last week after getting the requisite clearance from the government.

"After the approval, government will decide on the stake dilution and form," he said.

He added that is hopeful that the would hit the market by March next year as the non-life market is now quite active.

Kumar said that has been able to improve the solvency margins by increasing the networth.

"The networth has been increasing by the NCD (Non-Convertible Debentures) issue of Rs 900 crore and also by way of increasing the book value," he said.

NIC has also submitted a roadmap to the government and the regulator, he said.

This year, NIC is aiming at a premium income collection of Rs 16,000 crore compared to Rs 14,256 crore last fiscal, he said.

First Published: Sun, September 17 2017. 10:34 IST