New India Assurance issues IPO
MUSCAT: The New India Assurance Company wholly owned by Govt. of India has announced the launch of its initial public offering.
The promoters of the company are the President of India acting through the Ministry of Finance, Govt. of India. The net offer is for 120000000 equity shares. The price band is Rs770 – 800 per equity share of face value at Rs5 each. The retail discount could be Rs30 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 bid/offer opens on November 1, 2017 and closes on November 3, 2017.
The lead managers for the offer are – Kotak Investment Bank, Axis Capital, IDFC Bank, Nomura FA and Securities and YES Securities.
New India is the premier multinational general insurance company of India with operations in 28 countries including GCC, UK, Japan, Australia, New Zealand, Hongkong and also from the Box at Lloyds. The company was established in the year 1990 and is in existence in the global market for the last 98 years.
New India is the only direct insurer in India with A-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 No.1 general insurer in India in terms of premium, profit, market share and distribution network. In addition, it has the highest claim settlement ratio and second lowest claim repudiation ratio. Its solvency margin is 2.27, which indicate its strong financial strength.
In Oman, its operations began in 1974 and it is the largest NonLife Foreign Insurer operating in this country.
It has taken extensive efforts for devising and marketing needbased insurance covers to cater the insurance requirements of expats and that of leading corporate houses in Oman. Abdul Aziz & Brothers is the chief agent for New India in Oman.