The New India Assurance Co. Ltd is the oldest in operation for almost a century and largest general insurance company in India. It is a 100 % Govt owned multinational general insurance company operating in 28 countries and headquartered in Mumbai, India. They are also going to take the advantage of stock market listing by launching their initial public offering soon. Let me discuss The New India Assurance IPO review alongwith the issue’s date, price, draft prospectus and grey market premium.
About The New India Assurance Company Limited IPO:
- IPO opens on – November 1, 2017
- IPO closes on – November 3, 2017
- Face value – Rs 5 Per Equity Share
- Issue price – Rs. 770 – Rs. 800 Per Equity Share .
- Issue type – Book Built Issue IPO.
- Minimum lot – Nil.
- Minimum order quantity – Nil.
- Retail Allocation – 35%
- Issue size – Rs. 821.62 crores to Rs. 829.36 crores.
- Listing exchange – BSE, NSE.
- DRHP – Cick here.
Objectives of the issue:
- Offer for Sale – The proceeds of the Offer for Sale shall be received by the Selling Shareholder. Company will not receive any proceeds from the Offer for Sale.
- Fresh Issue – Company proposes to utilize the Net Proceeds towards meeting our future capital requirements which are expected to arise from the growth and expansion of our business, improving our solvency margin and consequently our solvency ratio.
About The Company –
- The New India Assurance Company Limited offers insurance in categories including fire insurance; marine insurance, motor insurance, crop insurance, health insurance and other insurance products.
- This company is the market leader in the general insurance industry in India across the segments except for crop insurance.
- In this company has built a multi-channel distribution network that includes individual and corporate agents, brokers, bancassurance partners and other intermediaries, as well as direct sales and sales through online channels.
- The New India Assurance Company’s distribution network includes 68,389 individual agents and 16 corporate agents, 25 banks, and a large number of OEM and automotive dealer.
- Competitive Strengths of the company are –
1. Market leadership and established the brand for around 100 years.
2. International operations since 1920. Presence in the UK with a desk at Lloyd‘s, London. Also, have operations in Japan and Australia for over 50 years.
3. Diversified product offering.
4. A Strong relationship with reputed reinsurers.
5. Expansive multi-channel distribution network.
6. Robust IT infrastructure.
Promoters of the company :
The promoter of the company is the President of India, acting through the MoF.
The New India Assurance IPO Review: This is an hot upcoming issue and the second general insurance company to be listed this year after ICICI Lombard IPO which has so far given marginal gains to the investors. At an issue price of Rs. 770 to Rs. 800 the issue looks fully priced. Our view remains NEUTRAL and long term investors can think of investing in this giant insurer. While short term investors looking for listing gains must consult our last day IPO picking method.