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New India Assurance IPO: Largest PSU general insurer to hit market by Dec

New India has a 16% market share, had a domestic premium income of Rs 19,115 crore this fiscal

Press Trust of India  |  New Delhi 

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Gearing up for the first-ever IPO by a PSU insurer, New Assurance will soon be filing preliminary papers with regulator so that it can hit the market by December.

New Assurance is the largest among the four PSU general companies that are wholly-owned by the

"We are hoping that the initial public offer (IPO) process gets completed by the end of the calendar year if market conditions are favourable," New Assurance Chairman-cum-Managing Director G Srinivasan told PTI.

The company is in the process of filing the draft red herring prospectus (DRHP) for the proposed issue.

The DRHP should be filed soon, he said, without giving a timeline.

The authorised share capital of the company stood at Rs 300 crore and the paid-up share capital Rs 200 crore as on March 31, 2016. The holds 100 per cent stake in the company.

has reported a net profit at Rs 1,008 crore in 2016-17, up 22 per cent over the previous year, driven by investment income which whittled down the high underwriting losses.

The insurer, with 16 per cent market share, had a domestic premium income of Rs 19,115 crore, a growth of 27.17 per cent from Rs 15,115 crore a year before.

Headquartered in Mumbai, is the only Indian entity to have a trading desk at Lloyd's of London, the provider of specialist services.

In January this year, the Union Cabinet had approved the listing of general companies on stock The government, which currently holds 100 per cent in five public insurers -- New India Assurance, National Insurance, United Insurance, Oriental Insurance and reinsurance company Corporation -- is looking to raise Rs 11,000 crore by selling its stake in general insurers.

The had approved dilution of up to 25 per cent equity stake in the five companies in tranches.

and Corporation have already appointed bankers and legal advisors.

First Published: Sun, June 25 2017. 17:05 IST