The country's biggest nonlife insurer, New India Assurance, is expected to sell 15% of its shares to raise as much as INR8,000 crore (US$1.24 billion) in an initial public offering (IPO) in the next six to eight months.
The stake to be sold would include 5% fresh equity, said two sources in the know of the development.
The insurer has already applied to the IRDAI for in-principle approval for the IPO, said another source in the know of the development, reported The Economic Times.
However, Mr G Srinivasan, Chairman of New India Assurance, said no decision had been taken yet on the IPO.
New India Assurance recorded 22% growth in profit after tax to INR1,008 crore in the financial year ended 31 March 2017 aided by a growth in investment income. The company, which reported underwriting losses of INR3,500 crore during the year, expects to break even in underwriting in the next three years. Its combined ratio improved marginally to 118% from 120%.
During the financial year ended March 2017, the company clocked a 21.3% increase in global premium income to INR22,279 crore while domestic business grew 26% to INR 19,115 crore. It is looking at a global premium of INR26,000 crore this financial year.