New India’s Rs 9,600 crore IPO to open November 1; co esteemed at Rs 66,000 crore

The company proposes to make the most of the net proceeds of the recent issue against assembly future capital necessities.

New India Assurance’s Rs 9,600 crore initial public offering (IPO) will open on November 1 and shut on November 3. The price fee band has been fixed at Rs 770 to Rs 800 and the IPO will comprise of 120 million shares.

Of this, there's a fresh issue of up to 24 million equity shares and an offer for sale of up to 96 million equity shares via The President of India, performing throughout the Ministry of Finance, government of India. The offer shall constitute 14.56 % of the put up-provide paid-up equity capital of the company.

At Rs 9,600 crore for a 14.56 percent stake, the insurance company has been valued at virtually Rs 66,000 crore. Explaining the rationale, bankers said that now not best is the insurance firm the market leader in the space, the corporate has additionally been ready to file a gradual dip in its claims losses and blended ratio.

The offer additionally includes a reservation of as much as 3.6 million equity shares for subscription by way of eligible workers. The supply will incorporate the net offer of up to 116.4 million equity shares and the worker reservation element of up to 3.6 million equity shares.

“The corporate proposes to utilize the net proceeds of the recent issue towards meeting future capital requirements which are expected to come up from the growth and growth of industry, bettering solvency margin and consequently solvency ratio of the corporate,” said a press statement.

Kotak Mahindra Capital company limited, Axis Capital limited,IDFC bank limited, Nomura financial Advisory and Securities (India) private limited and YES Securities (India) limited are the book running Lead Managers (BRLMs) to the offer.

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