New India Assurance, India's biggest non-life insurer, is set to launch its initial public offering (IPO) on 1 November, reported Reuters.
The IPO, to run for three days to 3 November, will have a price range of INR770 (US$11.85) to INR800 a share. The exercise comprises the sale of 96 million shares by the government, besides a fresh issue of 24 million shares thus making a total offer of 120 million shares. The total issue will constitute 14.56% of the post-offer paid-up share capital of the company.
New India Assurance, which has been making underwriting losses, will focus on retail business lines, underwrite viable policies and generate profits from core business, said Mr G Srinivasan, Chairman and Managing Director, in an interview with The Economic Times. “Our growth drivers will be retail, health, motor and personal lines,” he said.
Internationally, the strategy is to strengthen the company's current market position. Mr Srinivasan said that the insurer plans operations in Myanmar, Dubai and Qatar.