New India Assurance Company launches IPO

Muscat - 

India’s largest non-life insurer - the New India Assurance Company, which is wholly-owned by the government of India, has announced the launch of its initial public offering (IPO), according to a press release.The promoter of the company is the President of India acting through India’s Ministry of Finance.

The net offer is for 120mn equity shares and the price band is R770 – R800 per equity share of face value at R5 each. The retail discount could be R30 per equity share. The floor price is 154 times of face value of equity price and cap price is 160 times that of equity share. The bid can be made for a minimum lot of 18 shares and in multiples of 18 thereafter.

The offer will open on November 1 and will close on November 3. The lead managers for the offer are: Kotak Investment Bank, Axis Capital, IDFC Bank, Nomura FA and Securities and YES Securities.

New India is India’s premier multinational general insurance company with operations in 28 countries including the GCC states, the UK, Japan, Australia, New Zealand, Hong Kong and also from the Box at Lloyds.

New India is the only direct insurer in India with an excellent rating from AM Best. It is the market leader in India for the last 44 years and presently there are 31 general insurance players operating in India.

New India is the No1 general insurer in India in terms of premium, profit, market share and distribution network. It has the highest claim settlement ratio and second lowest claim repudiation ratio. Its 2.27 solvency margin indicates its strong financial strength.

In Oman, the company’s operations began in 1974 and it is the largest non-life foreign insurer operating in the sultanate. In Oman, it has taken extensive efforts for devising and marketing need based insurance covers to cater the insurance requirements of expatriates and that of leading corporate houses.

Abdul Aziz & Brothers LLC is the chief agent for New India in Oman.

Being a government-owned general insurance company, New India’s IPO is a good opportunity for Indian expatriates to invest safely under retail segment, as per information gathered from the stock markets.

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