As per the latest updates by SEBI, New India Assurance has received a green flag for its Initial Public Offering.
New India Assurance, the state-owned non-life insurance company, which also happens to be the largest in the country in its category, had filed its draft application back in August. For any IPO “Observations” is necessary, which the company received on the 15th of September.
So several merchant banking sources expect the IPO of New India Assurance to be in the region of $1 Billion.
The government will be selling 9.6 crores shares as part of the IPO and New India Assurance would shell out 2.4 crores shares.
Thus the IPO would comprise of 12 crores shares, which translates to about 14.56% of the company’s total shares.
Axis Capital, Yes Bank, IDFC Bank, Nomura, and Kotak will manage New India Assurance’s IPO.
The current government has a steep target of raising Rs. 72500 crores by divestment. New India is part of that divestment plan and will hit the market in the current fiscal year.
So, The IPO of New India Assurance will be followed by General Insurance Corporation of India and HDFC Standard Life Insurance, who are both waiting for SEBI’s approvals.