The government-owned nonlife insurer National Insurance Company (NIC) is expecting to receive between INR40 billion (US$623 million) and INR50 billion from the proceeds of its public offer planned to take place early next year.
Chairman and Managing Director of NIC, Mr K Sanath Kumar, told Press Trust of India that the company had submitted its IPO request to sector regulator IRDAI last week. “After the IRDAI approval, the government will decide on the stake dilution and form,” he said.
He added that NIC is hopeful that its IPO would hit the market by March next year.
The latest news about NIC's IPO plans follow the launch of a public offering last Friday by ICICI Lombard General Insurance, the first general insurer in India to float its shares. The IPO could raise about INR57 billion. It closes on 19 September, just a day before SBI Life Insurance launches its public offer.
The share sale of SBI Life, a unit of top Indian lender State Bank of India, opens on 20 September and closes on 22 September. It is expected to raise INR84 billion for SBI Life's main shareholders -- SBI and BNP Paribas.
SBI Life will be the third insurer, but the first company in the life sector, to list in the country, following ICICI Prudential Life and ICICI Lombard General.