New India Assurance Company has received Sebi’s nod to float its Initial Public Offer (IPO). The company will sell 2.4 crore shares through the IPO, while the government will sell 9.6 crore shares. New India Assurance Company, which is the country’s largest non-life insurer, had filed a draft prospectus with Securities and Exchange Board of India (Sebi) in August and received necessary ‘observations’ from it on September 15.
There are many other IPOs which have been floated recently. ICICI Lombard General Insurance Rs 5,700 crore IPO opened this month and became the first non-life insurance IPO.
The size of the forthcoming IPO is likely to be over USD 1 billion, as per merchant banking sources. Axis Capital, Yes Bank, Nomura, IDFC Bank and Kotak are managing the company’s IPO. The public sector insurer is expected to hit the market in the current financial year to help the government meet its ambitious disinvestment target of Rs 72,500 crore.
Earlier in August, HDFC Standard Life Insurance filed draft papers with capital markets regulator Sebi to raise an estimated Rs 7,500 crore through an initial public offering.
State-owned reinsurance company General Insurance Corp. of India (GIC) also had filed the draft red herring prospectus (DRHP) for its IPO seeking to raise up to Rs 10,000 crores through the proceeds. SBI Life Insurance Company, a subsidiary of State Bank of India had also filed the DRHP with SEBI aiming to raise up to Rs 7,000.
As carried in FE on 21/9/2107