News eDaily19 Sep 2017

India:New India clinches capital market regulator's nod for IPO

19 Sep 2017

State-owned New India Assurance has received approval from the securities regulator for its initial public offer (IPO) which is likely to raise over US$1 billion.

The country's largest nonlife insurer had filed a draft prospectus with the Securities and Exchange Board of India (SEBI) in August and received “observations” from it on 15 September that are necessary for an IPO.

According to the draft papers, a total of 120 million shares would be offered in the IPO, constituting around 14.56% of the company's post-issue share capital. The government will be selling 96 million shares, while the company will sell 24 million shares.

The public sector insurer is expected to launch its IPO in the current financial year ending March 2018 to help the government meet its ambitious disinvestment target of INR725 billion (US$11.3 billion).

New India Assurance's IPO will be the second by a nonlife insurance company in India. Currently, the country's largest private sector general insurer, ICICI Lombard General, is carrying out its initial share sale exercise which closes today. The amount of money to be raised is around INR57 billion.

In 2016, ICICI Prudential Life became the country's first listed insurer after an INR60-billion public issue.

 

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